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work × m MHE Reader ecure https://newconnect.mheducation.com/flow/connect.html pter 3 Homework x M MHE Reader Seved ) Help Save & Exit Submit Check my work 4 Selected T-accounts of Moore Company are given below for the just completed year Raw Materials 134,000 Work in Process 22,000 Credits ? Debits 215,560Credits Bal. 1/1 Debits nts Fa Bal. 1/1 27,000 Credits 1,000 Debits 199,000Bal. 1/1 97,000 171,000 232,560 194,000 7,500 eBook Direct materials Direct labor Overhead Bal. 12/31 Bal. 12/31 Print Finished Goods Cost of Goods Sold ? Debits Bal, 1/1 Debits 47,000 Credits Bal. 12/31 70,500 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 manufacturina overhead underapolied or overaoolied? Bv how much?Explanation / Answer
1) Cost of raw material used in production = 22000+134000-32000 = $124000
2) Indirect materials = 124000-97000 = $27000
3) Indirect labour = 194000-171000 = $23000
4) Cost of goods manufactured = $491000
5) Unadjusted cost of goods sold = 47000+491000-70500 = $467500
6) Predetermine overhead rate = 232560*100/171000 = 136% of direct labour cost
7) Applied overhead = 232560
Actual overhead = 215560
Overapplied overhead = 232560-215560 = 17000
8) Ending balance in the work in process = 27000+97000+171000+232560-491000 = 36560
Direct labour cost = 9750
Applied overhead = 9750*136% = 13260
Direct material = 36560-9750-13260 = 13550
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