Selected T-accounts for Moore Company are given below for the just completed yea

Question

Selected T-accounts for Moore Company are given below for the just completed year Raw Materials Bal. 1/1 Debits Credits 32,000 450,000 Credits Debits 212,000 Bal. 12/31 51,000 Work in Factory Wages Payable Debits 177,000 Bal. 1/1 13,000 Bal. 1/1 Direct materials 77,000 321,000 Credits 540,000 Credits 182.000 Bal. 12/31 18.000 Direct labor Overhead 152,000 258.400 Bal. 12/31 Finished Goods Cost of Goods Sold Credit Debits Bal. 1/1 Debits 43,000 Bal. 12/31 138.000 Required 1. What was the cost of raw materials put into production during the year? ost of raw materials

Explanation / Answer

Solution:

Part 1 -- Cost of raw material put into production during the year

Cost of raw material put into production during the year = Raw materials beginning inventory + Debit purchases – Ending Raw Materials inventory 12/31

= $32,000 + 450,000 – 51,000

= $431,000

Part 2 – Indirect materials = Total Cost of raw material put into product – Direct materials requisitioned to Work in Process Inventory

= $431,000 - $321,000

= $110,000

Part 3 –

Indirect Labor Cost = Total Factory Wages Credited $182,000 – Direct Labor assigned to work in process $152,000

= $30,000

Part 4 –

Cost of Goods manufactured can be find out from Work in Process Inventory.

Cost of goods manufactured = $540,000

Part 5 –

Cost of Goods Sold for the year = beginning inventory of finished goods + Cost of Goods manufactured – Ending Inventory of Finished Goods

= 43,000 + 540,000 – 138,000

= $445,000

Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you

Pls ask separate question for remaining parts.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.