Alden Company recorded the following transactions for the just completed month.T

Question

Alden Company recorded the following transactions for the just completed month.The company had no beginning inventories. $72,000 in raw materials were purchased for cash. (b) $67.000 in raw materials were requisitioned for use in production. Of this amount, $56,000 was for direct materials and the remainder was for indirect materials. o al abor wages of $11200 were incurred and paid in cash ort is amount, 94,00 was ordirect abo and $18,000-7 was for indirect labor. (UyAdditional manufacturing overhead costs of $108,000 were in (eManufacturing overhead costs of $130,000 were applied to jobsusing the company's predetermined overhead rate. (All of the jobs worked on during the month were completed and shipped to customers. (8) The underapplied or overapplied overhead for the month was closed out to Cost of Goods Sold. o paid in cash. Required: a. Post the above transactions to T-accounts. b. Determine the cost of goods manufactured. $ c. Determine the cost of goods sold (after closing Manufacturing Overhead). $

Explanation / Answer

Journal:

T accounts:

b. cost of goods manufactured = 280000

c. Cost of goods sold= 287000

Ref Account Debit Credit a Raw materials        72,000 Cash      72,000    b-1 Work in process        56,000    Raw materials      56,000    b-2 Manufacturing overhead        11,000    Raw materials      11,000    c-1 Wages     1,12,000    Cash 1,12,000    c-2 Work in process        94,000    Wages      94,000    c-3 Manufacturing overhead        18,000    Wages      18,000    d Manufacturing overhead     1,08,000    Cash 1,08,000    e Work in process     1,30,000    Manufacturing overhead 1,30,000    f-1 Finished goods     2,80,000    Work in process 2,80,000    f-2 Cost of goods sold     2,80,000    Finished goods 2,80,000    g Cost of goods sold          7,000    Manufacturing overhead        7,000

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