Bal. 1/1 32,000 Credits ? Debits 387,000 Credits ? Debits 450,000 Bal. 12/31 58,
ID: 2373607 • Letter: B
Question
Bal. 1/1 32,000
Credits ?
Debits 387,000
Credits ?
Debits 450,000
Bal. 12/31 58,000
Bal. 1/1 71,000
Credits 740,000
Debits 177,000
Bal. 1/1 13,000
Credits 181,000
Direct labor 111,000
Bal. 12/31 17,000
Overhead 410,000
Bal. 12/31 ?
Bal. 1/1 48,000
Credits ?
Debits ?
Debits ?
Bal. 12/31 136,000
What was the cost of raw materials put into production during the year?
How much of the materials in (1) above consisted of indirect materials?
How much of the factory labor cost for the year consisted of indirect labor?
What was the cost of goods manufactured for the year?
What was the cost of goods sold for the year (before considering underapplied or overapplied overhead)?
If overhead is applied to production on the basis of direct materials cost, what predetermined rate was in effect during the year? (Round your answer to 2 decimal places.)
Was manufacturing overhead underapplied or overapplied? By how much? (Input the amount as a positive value.)
Compute the ending balance in the Work in Process inventory account. Assume that this balance consists entirely of goods started during the year. If $32,200 of this balance is direct materials cost, how much of it is direct labor cost? Manufacturing overhead cost? (Round your predetermined overhead rate percentage and final answers to 2 decimal places.)
Selected T-accounts for Rolm Company are given below for the just completed year:Explanation / Answer
1. Cost of raw materials put into production: 32,000+450,000-58,000 = $424,000 2. Indirect materials placed into production: 424,000-321,000 = $103,000 3. Indirect labor in factory overhead: 181,000-111,000 = $70,000 4. Cost of goods manufactured: $740,000 5. Cost of goods sold (ignoring under/overapplied factory overhead): 48,000+740,000-136,000 = $652,000 6. Predetermined overhead rate: 410,000/321,000 = 127.73% 7. First, find the balance in the manufacturing overhead account. The problem already reveals a debit of 387,000, and the debit to WIP for 410,000 for manufacturing overhead will mean that the credit in the manufacturing overhead account is 410,000. A debit of 387,000 and a credit of 410,000 to the manufacturing overhead accounts means that there is a 23,000 (credit) balance in the account. (DU/CO: Debit-underapplied; Credit-overapplied). Therefore: Manufacturing overhead was overapplied by $23,000. 8. (I will be going a little out of order here.) Ending balance in work in process: 71,000+321,000+111,000+410,000-740,000 = $173,000 Manufacturing overhead: 32,200*1.2773 (from 6) = $41,129.06 Direct labor: 173,000-32,200-41,129.06 = $99,670.94 Hope this helps.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.