Determine and Use Overhead Rate The following selected ledger accounts of the La

Question

Determine and Use Overhead Rate The following selected ledger accounts of the Lakewood Manufacturing Company are for May (the fifth month of its accounting year):

Determine the amount of indirect material requisitioned for production during May.

b. How much indirect labor cost was apparently incurred during May?

c. Calculate the manufacturing overhead rate based on direct labor cost.

%

d. Was manufacturing overhead for May under- or over-applied, and by what amount?

Manufacturing overhead was (under applied or over-applied) by

for May.

e. Was manufacturing overhead for the first five months of the year (under- or over-applied), and by what amount?

Manufacturing overhead was ___

for the first five months.

f. What is the cost of production completed in May?

g. What is the cost of goods sold in May?

Menu Kate Heal Determine and Use Overhead Rate Finish attempt The following selected ledger accounts of the Lakewood Manufacturing Company are for May (the fifth month of its accounting year): Material Inventory May 1 balance 40,000 May credits 150,000 May debits 125,000 Factory Overhead May debits 160,000 May 1 balance 14,000 May credits 144,000 Work in Process Inventory May 1 balance 28,000 May credits 440,000 May debits: Direct material 129,000 Direct labor 180,000 Man. overhead 144,000 Factory Payroll Payable May debits 228,000 May 1 balance 50,000 May credits 196,000 Finished Goods Inventory May 1 balance 02,000 May credits 510,000

Explanation / Answer

a) The amount of indirect material requisitioned for production during May. = Total Material inventory issued ($150000) less issue to direct consumption to WIP $129000 = $21000

b) indirect labor cost was apparently incurred during May. = Wages incurred 196000 - wages concerning direct labor (WIP) $180000 = $16000

c)the manufacturing overhead rate based on direct labor cost.= 144000 / 180000 = 80% of DLC

d) Under-applied manufacturing overhead in May. = $144000 - overhead incurred $160000= $16000

e) Manufacturing overhead for the first two month = overapplied in first month $14000 - Manufacturing overhead incurred in may $160000 + manufacturing overhead applied $144000 = $2000(under applied)

f) The cost of production completed in May. = $440,000

g) The COGS in may. = $510,000

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.