McGrawHis Connect X Correct ure I httpsnewconnectmheducatic

McGraw-His Connect X Correct ure I https//newconnect.mheducatic Homework Problem 3-11 TAccount Analysis of Cost Flows [LO3-2, Lo3-3, Lo3-4 Selected T-accounts of Moore Company are given below for the just completed year Credits eee Debits Direct materials Direct labor 110,800 218,60 Bal. 12/3 14,000 Bal. 12/31 9o,000 Required: 1. What was the cost of raw materials used in production during the year? 2 How much of the materials in ( above consisted of ndirect 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 $13,000 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. Rea 1 to 5 R6 Rea 7 Req & Compute the ending balance in Work in Process. Assume that this balance consists entirely of goods started during the year 1f $13,000 of this balance is direct labor cost, how much of it is direct materials cost? Applied overhead cost? Ending balance in the work in process S 48400 materials cost Applied overhead cost Prev 1 of 4 Next >

Solution

1) Cost of raw materials put into production Raw materials inventory, 1/1 $35,000.00 Purchases of materials $160,000.00 Materials available for use $195,000.00 Raw materials inventory, 12/31 -$45,000.00 Materials requisitioned for production $150,000.00 2) Materials requisitioned for production $150,000.00 Debited to Work in Process as direct materials -$110,000.00 Indirect Material $40,000.00 3) Total factory wages accrued during the year(credits to the Factory Wages Payable account) $220,000.00 Direct labor cost (from Work in Process) -$210,000.00 Indirect labor cost $10,000.00 4) Cost of goods manufactured (credits to the Work in Process account) $530,000.00 5) Finished goods inventory, 1/1 $60,000.00 Add: Cost of goods manufactured $530,000.00 Goods available for sale $590,000.00 Finished goods inventory, 12/31 -$90,000.00 Cost of goods sold $500,000.00 6) Predetermined overhead rate = Estimated total manufacturing overhead cost/Estimated total amount of the allocation base Predetermined overhead rate = $218,400/$210,000 direct labor cost 104.00% of direct labor cost 7) Actual manufacturing overhead cost for the year (debits) $188,400.00 Applied manufacturing overhead cost $218,400.00 Overapplied overhead -$30,000.00 8) Balance, Work in Process, 12/31 $48,400.00 Less: Direct labor cost (given) -$13,000.00 Less :Manufacturing overhead cost ($13,000 × 104%) -$13,520.00 Direct materials cost $21,880.00