Manufacturing Cost Flows with Machine Hours Allocation On November 1, Robotics M

Question

Manufacturing Cost Flows with Machine Hours Allocation

On November 1, Robotics Manufacturing Company's beginning balances in manufacturing accounts and finished goods inventory were as follows:

Raw Materials $11,000

Manufacturing Supplies 500

Work-in-Process 4,500

Finished Goods 27,000

During November, Robotics Manufacturing completed the following manufacturing transactions: 1. Purchased raw materials costing $47,000 and manufacturing supplies costing $3,000 on account. (Single Transaction)

2. Requisitioned raw materials costing $40,000 to the factory.

3. Incurred direct labor costs of $27,000 and indirect labor costs of $4,800.

4. Used manufacturing supplies costing $2,500.

5. Recorded manufacturing depreciation of $15,000.

6. Miscellaneous payables for manufacturing overhead totaled $3,600.

7. Applied manufacturing overhead, based on 2,250 machine hours, at a predetermined rate of $10 per machine hour.

8. Completed jobs costing $90,000.

9. Finished goods costing $96,000 were sold.

(a) Prepare "T" accounts showing the flow of costs through all manufacturing accounts, Finished Goods Inventory, and Cost of Goods Sold.

(b) Calculate the balances at the end of November for Work-in-Process Inventory and Finished Goods Inventory. (Enter transactions in the T-accounts in the order they appear, including the beginning balances, if available. Compute the final balance, if requested.)

Raw Materials Inventory

Work-in-Process Inventory

Finished Goods Inventory

Cost of Goods Sold

Accumulated Depreciation- Factory

Accounts Payable

Wages Payable

Other Payables

Manufacturing Supplies

Manufacturing Overhead

Explanation / Answer

Raw Material Account Particular Amount Particular Amount Opening Balance                                11,000.00 Work in Process      40,000.00 Accounts Payable                                47,000.00 Balance      18,000.00                                58,000.00      58,000.00 Accounts Payable Account Particular Amount Particular Amount By Accounts Payable      47,000.00 Manufaturing Supplies Account Particular Amount Particular Amount Opening Balance                                      500.00 Manufacturing Overhead        2,500.00 Accounts Payable                                  3,000.00 Balance        1,000.00                                  3,500.00        3,500.00 Direct Labor cost Account Particular Amount Particular Amount Wages payable                                27,000.00 Work in Process      27,000.00 Wages Payable Account Particular Amount Particular Amount Direct Labor cost      27,000.00 Manufacturing Overhead account        4,800.00 Other Payables Particular Amount Particular Amount Manufacturing Overhead account        3,600.00 Manufacturing Depreciation account Particular Amount Particular Amount Accumulated Depreciation                                15,000.00 Manufacturing Overhead Account      15,000.00 Accumulated Depreciation Account Particular Amount Particular Amount Manufacturing Depreciation account      15,000.00 Manufacturing Overhead Account Particular Amount Particular Amount Wages payable                                  4,800.00 Work in Process      22,500.00 Other Payables                                  3,600.00 Manufacturing Depreciation account                                15,000.00 Underapplied OH            900.00                                23,400.00      23,400.00 Work -In -Process Account Particular Amount Particular Amount Opening Balance                                  4,500.00 Finished Goods      90,000.00 Raw material account                                40,000.00 Direct Labor cost account                                27,000.00 Manufacturing Overhead Account                                22,500.00 Balance        4,000.00                                94,000.00      94,000.00 Finished Goods Account Particular Amount Particular Amount Opening Balance                                27,000.00 Cost of Goods Sold      96,000.00 Work -In -Process Account                                90,000.00 Balance      21,000.00                            1,17,000.00 1,17,000.00 Cost of Goods Sold Account Particular Amount Particular Amount Finished Goods Account                                96,000.00 Ans 2 Closing Balances Amount Raw Material                                18,000.00 Work in Process                                  4,000.00 Finished Goods                                21,000.00

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