Selected T-accounts for Moore Company are given below for the just completed yea
ID: 2492602 • Letter: S
Question
Selected T-accounts for Moore Company are given below for the just completed year:
Raw Materials
Manufacturing Overhead
Bal. 1/1 39,000
Credits ?
Debits 211,000
Credits ?
Debits 410,000
Bal. 12/31 56,000
Work in Process
Factory Wages Payable
Bal. 1/1 78,000
Credits 470,000
Debits 179,000
Bal. 1/1 12,000
Direct materials 323,000
Credits 178,000
Direct labor 153,000
Bal. 12/31 11,000
Overhead 252,450
Bal. 12/31 ?
Finished Goods
Cost of Goods Sold
Bal. 1/1 41,000
Credit ?
Debits ?
Debits ?
Bal. 12/31 135,000
Required:
1.
What was the cost of raw materials put into production during the year?
2.
How much of the materials in (1) above consisted of indirect materials?
3.
How much of the factory labor cost for the year consisted of indirect labor?
4.
What was the cost of goods manufactured for the year?
5.
What was the cost of goods sold for the year (before considering underapplied or overapplied overhead)?
6.
If overhead is applied to production on the basis of direct labor cost, what rate was in effect during the year? (Round your percentage answer to 2 decimal (i.e., 0.1234 needs to be considered as 12.34.))
7.
Was manufacturing overhead underapplied or overapplied? By how much?
Compute the ending balance in the Work in Process inventory account. Assume that this balance consists entirely of goods started during the year. If $32,600 of this balance is direct labor cost, how much of it is direct materials cost? Manufacturing overhead cost? (Round your predetermined overhead rate percentage and final answers to 2 decimal places.)
Selected T-accounts for Moore Company are given below for the just completed year:
Explanation / Answer
Answer 1. Cost of raw materials put into production during the year = $393000 Raw Materials Bal 1/1 39000 393000 Credits Debits 410000 (Bal. fig.) Bal. 12/31 56000 Answer 2. Materials in (1) above consisted of indirect materials = $393000 - $323000 (DM used in WIP) Materials in (1) above consisted of indirect materials = $70,000 Answer 3. Factory labor cost for the year consisted of indirect labor = $178000 - 153000 Factory labor cost for the year consisted of indirect labor = $25000 Answer 4. Cost of goods manufactured for the year = $470,000 Answer 5. Cost of goods sold for the year = $376000 (before considering underapplied or overapplied overhead) Finished Goods Bal. 1/1 41,000 376,000 Cr.-COGS Dr - WIP 470,000 (Bal. Fig) Bal. 12/31 135,000 Answer 6. Overhead is applied to production on the basis of direct labor cost Predetermined Overhead Rate = 252450 / 153000 = 165% Answer 7. Manufacturing overhead - underapplied or overapplied MOH Applied 252450 Actual - MOH 211000 OverApplied MOH 41450 Answer 8. WIP at the End = $336450 DM Cost = $250,060 Overhead = $53790 WIP Bal 1/1 78,000 470,000 Cr. - Fin Goods DM 323,000 DL 153,000 Overhead 252,450 Bal-12/31 336,450 Direct Material (Bal Fig.) 250060 Direct Labor 32600 Overhead - 32600 *165% 53790 Total 336450
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