Question

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. 6. If overhead is applied to production on the basis of direct labor cost, what predetermined overhead rate was in effect during the year? 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 $8,000 of this balance is direct labor cost, how much of it is direct materials cost? Applied overhead cost?

Answer 1

Answer:

1) Cost of raw material put into production = 32000+420000-57000 = 395000

2) Indirect material = 395000-323000 = 72000

3) Indirect labour = 179000-152000 = 27000

4) Cost of goods manufactured = 520000

5) Cost of goods sold = 43000+520000-132000 = 431000

6) Overhead rate = 250800*100/152000 = 165% of direct labour cost

7) Applied overhead = 250800

Actual overhead = 216000

Overapplied overhead = 250800-216000 = 34800

8) Calculate balance

Ending work in progress:282800

Direct labour:8000

Overhead (8000×165%)=13200

Direct material(282800-8000-13200)=261600.

Attached is the table of data used.

Answer 2

Based on the selected T-accounts of Moore Company, the question requirements are solved as follows:

1. The cost of raw materials used in production during the year is $395,000 ($32,000 + $420,000 - $57,000).

2. The indirect materials in (1) above is $72,000 ($395,000 - $323,000).

3. The indirect factory labor cost for the year is $24,000 ($176,000 - $152,000).

4. The cost of goods manufactured for the year is $520,000 (being the credit on the WIP account).

5. The unadjusted cost of goods sold for the year is $431,000 ($43,000 + $520,000 - $132,000).

6. If the overhead is applied to production on the basis of direct labor cost, the predetermined overhead rate in effect during the year is $0.7765 ($250,800/$323,000).

7. The manufacturing overhead was overapplied by $34,800 ($250,800 - $216,000).

8. The computation of the ending balance in Work in Process is as follows:

Ending WIP = $282,800 ($77,000 + $323,000 + $152,000 + $250,800 - $520,000).

9. If $8,000 of this balance is direct labor cost, the direct materials costs are $17,000 ($323,000/$152,000 x $8,000) + $77,000.

10.  If $8,000 of this balance is direct labor cost, and $17,000 is the direct materials costs, the Applied overhead cost is $257,800, which is not realistic.

What is a T-account?

A T-account is a representative of a ledger account.

T-accounts are now used as an accounting tool to solve missing figures.

Learn about T-accounts at https://brainly.com/question/24401217