Selected T-accounts of Moore Company are given below for the just completed year
ID: 2534322 • Letter: S
Question
Selected T-accounts of Moore Company are given below for the just completed year: Raw Materials Manufacturing Overhead Bal Debits Bal 23,000Credits 136,000 ebits Work in Process Factory Wages Payable Bal Direct materials Direct labor Overhead Bal 28,000Credits 494,000 201,000Bal.1 98,000 174,000 222,720 Credita Ba 196,000 Pinished Goods Cost of Goods Sold Bal Debits Bal 48,000Credits Debits 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 year? 6. If overhead is applied to production on the basis of direct labor cost, what predetermined overhead rate was in effect during the 7. Was manufacturing overhead underapplied or overapplied? By how much? 8. Compute the ending balance in Work in Process. Assume that this balance consists entirely of goods started during the year. If $10,000 of this balance is direct labor cost, how much of it is direct materials cost? Applied overhead cost? Complete this question by entering your answers in the tabs below Req 1 to5 Req 6 Req 7 Req 8 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 answe Show lessA $ 23,000 1. Cost of raw materials 2. Indirect materials 3. Indirect labor cost 4. Cost of goods manufactured 5. Unadjusted cost of goods soldExplanation / Answer
Solution 1:
Total raw material used in production = Begining material inventory + Purchases - Ending inventory
= $23,000 + $136,000 - $33,000 = $126,000
Solution 2:
Total raw material used = $126,000
Direct material used = $98,000
Indirect material used = $126,000 - $98,000 = $28,000
Solution 3:
Total labor cost incurred = Credit to wages payable during the period = $196,000
Direct labor used in production = $174,000
Factory labor cost consisted of indirect labor = $196,000 - $174,000 = $22,000
Solution 4:
Cost of goods manufactured for the year = Credit to work in process = $494,000
Solution 5:
Unadjusted cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory
= $48,000 + $494,000 - $72,000 = $470,000
Solution 6:
Predetermined overhead rate on the basis of direct labor cost = Overhead applied / Direct labor cost
= $222,720 / $174,000 = 128%
Solution 7:
Total manufacturing overhead incurred = $204,720
Manufacturing overhead applied = $222,720
Overapplied overhead = $222,720 - $204,720 = $18,000
Solution 8:
Ending WIP = $28,000 + $98,000 + $174,000 + $222,720 - $494,000 = $28,720
Direct labor cost in ending WIP = $10,000
Applied overhead in ending WIP = $10,000*128% = $12,800
Direct material cost in ending WIP = $28,720 - $10,000 - $12,800 = $5,920
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