Alden Company recorded the following transactions for the ju

Alden Company recorded the following transactions for the just completed month.The company had no beginning inventories. $72,000 in raw materials were purchased for cash. (b) $67.000 in raw materials were requisitioned for use in production. Of this amount, $56,000 was for direct materials and the remainder was for indirect materials. o al abor wages of $11200 were incurred and paid in cash ort is amount, 94,00 was ordirect abo and $18,000-7 was for indirect labor. (UyAdditional manufacturing overhead costs of $108,000 were in (eManufacturing overhead costs of $130,000 were applied to jobsusing the company\'s predetermined overhead rate. (All of the jobs worked on during the month were completed and shipped to customers. (8) The underapplied or overapplied overhead for the month was closed out to Cost of Goods Sold. o paid in cash. Required: a. Post the above transactions to T-accounts. b. Determine the cost of goods manufactured. $ c. Determine the cost of goods sold (after closing Manufacturing Overhead). $

Solution

Journal:

T accounts:

b. cost of goods manufactured = 280000

c. Cost of goods sold= 287000

Ref	Account	Debit	Credit
a	Raw materials	72,000
	Cash		72,000
b-1	Work in process	56,000
	Raw materials		56,000
b-2	Manufacturing overhead	11,000
	Raw materials		11,000
c-1	Wages	1,12,000
	Cash		1,12,000
c-2	Work in process	94,000
	Wages		94,000
c-3	Manufacturing overhead	18,000
	Wages		18,000
d	Manufacturing overhead	1,08,000
	Cash		1,08,000
e	Work in process	1,30,000
	Manufacturing overhead		1,30,000
f-1	Finished goods	2,80,000
	Work in process		2,80,000
f-2	Cost of goods sold	2,80,000
	Finished goods		2,80,000
g	Cost of goods sold	7,000
	Manufacturing overhead		7,000