Question

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

  

Raw Materials

Manufacturing Overhead

Bal. 1/1                   34,000		Credits                 ?		Debits                216,000		Credits                 ?
Debits                   450,000
Bal. 12/31               55,000

Work in Process

Factory Wages Payable

Bal. 1/1                   77,000		Credits              520,000		Debits               174,000		Bal. 1/1                 12,000
Direct materials      322,000						Credits                180,000
Direct labor            152,000						Bal. 12/31             18,000
Overhead               243,200
Bal. 12/31                    ?

Finished Goods

Cost of Goods Sold

Bal. 1/1                  49,000		Credit                     ?		Debits                      ?
Debits                         ?
Bal. 12/31             138,000

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., 1.2345 needs to be considered as 123.45.))

7.	Was manufacturing overhead underapplied or overapplied? By how much?

  

8.	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.)

     

rev: 08_19_2014_QC_52473, 03_24_2015_QC_CS-11756

Garrison 15e Recheck 2014-12-16

Answer 1

Ans 1 Cost of raw material	429000
34000+450000-55000
ans 2 Indirect material	107000
429000-322000 (direct material)
ans 3 Factory labor cost for the indirect labor
174000-152000	22000
ans 4
Cost of good manufactured	$520,000
ans 5 cost of good sold	431000
49000+520000-138000
ans 6
Overhead rate	160	%
243200/152000*100
ans 7
Overapplied
243200-216000	27200
ans 8
WIP ending balance
77000+320000+152000+243200-520000	272200
Direct labor cost	$32,600
Overhead (32600*160%)	$52,160
Direct material cost 272200-32600-52160	$187,440