Malty is a national company whose office facilities were rav

Malty is a national company whose office facilities were ravaged by fire on July 15, 2017. The following information was retrieved from the remaining (singed) accounting documents. Malty\'s uses normal job-order costing and its fiscal year-end is September 30. Sept 30, 2016 July 15, 2017 Supplies inventory (direct and indirect materials)S 130,000 113,000 Work in process inventory Finished goods inventory Cost of goods sold Accounts payable for supplies purchased Manufacturing overhead incurred Manufacturing overhead applied Other information (Oct 1/16 to July 15/17) 96,000 37,000 632,000 42,000 26,000 17,000 31,500 27,200 34,200 Cash payments to suppliers Payroll (including $10,300 indirect) Indirect materials used 92,000 96,600 7,800 700 Over-applied overhead Answer the following questions: (a) What is the value of supplies purchased in the 9 1/2 month period ended July 15, 20177 $ What is the value of direct materials used in the 9 1/72 month period ended July 15.20177 (b) What is the value of direct labour incurred in the 9 1/2 month period ended July 15.20177 (e) What is the manufacturing overhead applied in the 9 1/2 month poriod ended July 15, 20177 s under-appliod for the year ended Seps 30, 20167 (d) By how much was the manufacturing overhead over- or

Solution

b) Direct labour incurred = $96,600-$10300 (Indirect labour) =$86300

c)

d)

(a)	Accounts Payable foe supplies purchased
	Cash pmt	92000	Op bal	26000
	Cl. Bal	17000	Supplies purchased	83000
			(bal figure)
	Supplies Inventory
	Op bal	130000	Indirect material used	7800
			Direct material used	17000
			(130000-7800-113000)
			Cl. Bal	113000