Selected T-accounts of Moore Company are given below for the just completed year: Bal. 1/1 Debits…
The following solution is suggested to handle the subject “Selected T-accounts of Moore Company are given below for the just completed year: Bal. 1/1 Debits…“. Let’s keep an eye on the content below!
Question “Selected T-accounts of Moore Company are given below for the just completed year: Bal. 1/1 Debits…”
Selected T-accounts of Moore Company are given below for the just completed year: Bal. 1/1 Debits Bal. 12/31 Raw Materials 35,000 Credits 160,000 45,000 Manufacturing Overhead 188,400 Credits Debits 530,000 Work in Process Bal. 1/1 40,000 Credits Direct materials 110,000 Direct labor 210,000 Overhead 218,400 Bal. 12/31 ? Factory Wages Payable Debits 225,000 Bal. 1/1 Credits Bal. 12/31 Finished Goods Bal. 1/1 60,000 Credits Debits ? Bal. 12/31 90,000 Cost of Goods Sold Debits ? 19,000 220,000 14,000 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? 5. What was the unadjusted cost of goods sold for the year? Do not include any underapplied or overapplied overhead in your answer.
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? 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 year? 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 $13,950 of this balance is direct labor cost, how much of it is direct materials cost? Applied overhead cost?
Answer
Solution 1: | |
Cost of Raw materils used in Production | |
Beginning raw Materials | 35000 |
Purchases of materials | 160000 |
Total raw materials available | 195000 |
Less: Ending Raw materials | 45000 |
Cost of Raw materils used in Production | 150000 |
Solution 2: | |
Indirect Materials | |
Production costs of raw materials | 150000 |
Less: Direct materials used | 110000 |
Indirect materials | 40000 |
Solution 3: | |
Indirect labor cost | |
Factory Wages accrued (credits for Factory wages payable). | 220000 |
Less: Direct Labor cost | 210000 |
Indirect labor cost | 10000 |
Solution 4: | |
Cost Of goods Manufactured | |
Cost of goods manufactured (Credit in the WIP account). | 530000 |
Solution 5: | |
Unadjusted Cost of goods sold | |
beginning Finished Goods inventory | 60000 |
Add the cost of goods manufactured | 530000 |
Price of the goods on sale | 590000 |
Less: Ending Finished Goods inventory | 90000 |
Unadjusted cost of goods sold | 500000 |
Solution 6: | |
Predetermined Overhead rate | |
Overhead calculated (from WIP account). | 218400 |
Direct labor | 210000 |
Predetermined Overhead rate | 104% |
Solution 7: | |
Manufacturing Overhead under/overapplied | |
Overhead applied | 218400 |
Actual Overhead (from manufacturing overhead). | 188400 |
Overapplied overhead | 30000 |
Solution 8: | |
Ending Balance in Work in process | |
Finding balance in your work life is possible | 40000 |
Direct Materials | 110000 |
Direct labor | 210000 |
Overhead | 218400 |
Lower: The cost of goods manufactured | -530000 |
Ending Balance in Work in process | 48400 |
Direct Materials and Applied overhead cost | |
Direct Labor Cost | 13950 |
Predetermined Overhead Rate | 104% |
Applied Overhead cost | 14508 |
Direct Materials Cost (48400-13950-14508) | 19942 |
Conclusion
Above is the solution for “Selected T-accounts of Moore Company are given below for the just completed year: Bal. 1/1 Debits…“. We hope that you find a good answer and gain the knowledge about this topic of business.