Selected T-accounts of Moore Company are given below for the just completed year:
Raw Materials
Debit Credit
Balance 1/1 15,000 Credits ?question mark
Debits 120,000
Balance 12/31 25,000
Manufacturing Overhead
Debit Credit
Debits 230,000 Credits ?question mark
Work in Process
Debit Credit
Balance 1/1 20,000 Credits 470,000
Direct materials 90,000
Direct labor 150,000
Overhead 240,000
Balance 12/31 ?question mark
Factory Wages Payable
Debit Credit
Debits 185,000 Balance 1/1 9,000
Credits 180,000
Balance 12/31 4,000
Finished Goods
Debit Credit
Balance 1/1 40,000 Credits ?question mark
Debits ?question mark
Balance 12/31 60,000
Cost of Goods Sold
Debit Credit
Debits ?question mark
Required:
1. If overhead is applied to production using direct labor cost, what was the predetermined overhead rate?
2. Was manufacturing overhead underapplied or overapplied? By how much?
3. Compute the ending balance in Work in Process. Assume this balance consists entirely of goods started during the year. If $8,000 of this balance is direct labor cost, how much is direct materials cost? Applied overhead cost?
