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Bal. 1/1 32,000 Credits ? Debits 213,000 Credits ? Debits 490,000 Bal. 12/31 59,

ID: 2419262 • Letter: B

Question

  

   Bal. 1/1                   32,000

   Credits                 ?  

   Debits                213,000

  Credits                 ?   

   Debits                   490,000

                   

   Bal. 12/31               59,000

  


   Bal. 1/1                   80,000  

   Credits              550,000  

   Debits               175,000

   Bal. 1/1                 10,000  

   Direct labor            151,000  

   

   Bal. 12/31             14,000  

   Overhead               241,600  

   Bal. 12/31                    ?         

   Bal. 1/1                  48,000  

   Credit                     ?

   Debits                      ?   

  

   Debits                         ?

                   

   Bal. 12/31             135,000  

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 labor cost, what rate was in effect during the year? (Round your percentage answer to 2 decimal (i.e., 0.1234 needs to be considered as 12.34.))

Was manufacturing overhead underapplied or overapplied? By how much?

  

Compute the ending balance in the Work in Process inventory account. Assume that this balance consists entirely of goods started during the year. If $32,100 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.)

  

Raw Materials Manufacturing Overhead

Explanation / Answer

1

What was the cost of raw materials put into production during the year?

Solution:

Raw Material Balance 1/1

$          32,000

Add: Debits

$        490,000

Less: Balance 12/31

$        (59,000)

Raw materials put into production=

$        463,000

2

How much of the materials in (1) above consisted of indirect materials?

Solution:

Raw materials put into production

$        463,000

Less: Direct material (Work In process)

$     (327,000)

Indirect materials

$        136,000

3

How much of the factory labor cost for the year consisted of indirect labor?

Solution:

Factory Wages Payable credits

$        179,000

Less: Direct labor (Work in process)

$     (151,000)

Indirect labor

$          28,000

4

What was the cost of goods manufactured for the year?

Work in Process (Credit)

$        550,000

Cost of goods manufactured for the year

$        550,000

1

What was the cost of raw materials put into production during the year?

Solution:

Raw Material Balance 1/1

$          32,000

Add: Debits

$        490,000

Less: Balance 12/31

$        (59,000)

Raw materials put into production=

$        463,000

2

How much of the materials in (1) above consisted of indirect materials?

Solution:

Raw materials put into production

$        463,000

Less: Direct material (Work In process)

$     (327,000)

Indirect materials

$        136,000

3

How much of the factory labor cost for the year consisted of indirect labor?

Solution:

Factory Wages Payable credits

$        179,000

Less: Direct labor (Work in process)

$     (151,000)

Indirect labor

$          28,000

4

What was the cost of goods manufactured for the year?

Work in Process (Credit)

$        550,000

Cost of goods manufactured for the year

$        550,000

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