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

Question

Selected T-accounts of Moore Company are given below for the just completed year Raw Materials Bal. 1/1 Debits Manufacturing Overhead Debits216,880 Credits 20,ee0 Credits 13e,eee 3e,ee0 Work in Process Bal. 12/31 Factory Wages Payable Bal. 1/1 Direct materials Direct labor Overhead Bal. 12/31 25,e0 Credits 485,800 Debits 195,08 Bal. 1/1 11,580 198,898 6,580 95,eee Credits 165,00 231,eee Bal. 12/31 Finished Goods Cost of Goods Sold 45,00 Credits Debits Bal. 1/1 Debits Bal. 12/31 67,580 Required 1. What was the cost of raw materials used in 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? year? 5. What was the unadjusted cost of goods sold for the year? Do not include any underapplied or overapplied overhead in your answer. 6. If overhead is applied to production on the basis of direct labor cost, what predetermined overhead rate was in effect during the 7. Was manufacturing overhead underapplied or overapplied? By how much? 8. Compute the ending balance in Work in Process. Assume that this balance consists entirely of goods started during the year. If $9,250 of this balance is direct labor cost, how much of it is direct materials cost? Applied overhead cost?

Explanation / Answer

Req. 1 - 5:

1. Cost of raw materials used = $ 120,000

2. Indirect Materials = $ 25,000

3. Indirect Labor = $ 190,000 - $ 165,000 = $ 25,000.

4. Cost of Goods Manufactured : $ 485,000

5. Unadjusted Cost of Goods Sold : $ 462,500

Requirement 6 :

Requirement 7 :

Requirement 8:

The predetermined overhead rate was 140 % of direct labor cost

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