Complete this question by entering your answers in the tabs

Complete this question by entering your answers in the tabs below. Req 1 to 5 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 answer 1. Cost of raw materials Indrect materials 3 Indirect labor cost 5. Unadjusted cost of goods sold Req 6 > Next> ?Prey 1or 2 re to search

Solution

1) Cost of raw materials put into production Raw materials inventory, 1/1 $15,000.00 Purchases of materials $120,000.00 Materials available for use $135,000.00 Raw materials inventory, 12/31 -$25,000.00 Materials requisitioned for production $110,000.00 2) Materials requisitioned for production $110,000.00 Debited to Work in Process as direct materials -$90,000.00 Indirect Material $20,000.00 3) Total factory wages accrued during the year(credits to the Factory Wages Payable account) $180,000.00 Direct labor cost (from Work in Process) -$150,000.00 Indirect labor cost $30,000.00 4) Cost of goods manufactured (credits to the Work in Process account) $470,000.00 5) Finished goods inventory, 1/1 $40,000.00 Add: Cost of goods manufactured $470,000.00 Goods available for sale $510,000.00 Finished goods inventory, 12/31 -$60,000.00 Cost of goods sold $450,000.00 6) Predetermined overhead rate = Estimated total manufacturing overhead cost/Estimated total amount of the allocation base Predetermined overhead rate = $240,000/$150,000 direct labor cost 160.00% of Direct Labor Cost 7) Actual manufacturing overhead cost for the year (debits) $230,000.00 Applied manufacturing overhead cost $240,000.00 Overapplied overhead -$10,000.00 8) Balance, Work in Process, 12/31 $30,000.00 Less: Direct labor cost (given) -$8,000.00 Less :Manufacturing overhead cost ($8,000 × 160%) -$12,800.00 Direct materials cost $9,200.00