The following T-accounts represent November activity. Materials Inventory Work-In-Process Inventory 33,200 EB (11/30) 57,000 Finished Goods Inventory Cost of Goods Sold EB (11/30) 98,000 Manufacturing Overhead Control Applied Manufacturing Overhead 265,500 Wages Payable Sales Revenue 644,800 Additional Data • Materials of $115,100 were purchased during the month, and the balance in the Materials Inventory account increased by $10,900. • Overhead is applied at the rate of 150 percent of direct labor cost. Sales are billed at 160 percent of cost of goods sold before the over- or underapplied overhead is prorated. • The balance in the Finished Goods Inventory account decreased by $28,000 during the month before any proration of under-or overapplied overhead. • Total credits to the Wages Payable account amounted to $201,000 for direct and indirect labor. • Factory depreciation totaled $46,730. • Overhead was underapplied by $25,480. Overhead other than indirect labor, indirect materials, and depreciation was $203,150, which required payment in cash. Underapplied overhead is to be allocated. The company has decided to allocate 25 percent of underapplied overhead to Work-in-Process Inventory, 15 percent to Finished Goods Inventory, and the balance to Cost of Goods Sold. Balances shown in T-accounts are before any allocation. Required: Complete the T-accounts. Not all amount fields to be populated have accompanying descriptions. BB (11/1) Dir.Materials 87,100
The following T-accounts represent November activity. Materials Inventory Work-In-Process Inventory 33,200 EB (11/30) 57,000 Finished Goods Inventory Cost of Goods Sold EB (11/30) 98,000 Manufacturing Overhead Control Applied Manufacturing Overhead 265,500 Wages Payable Sales Revenue 644,800 Additional Data • Materials of $115,100 were purchased during the month, and the balance in the Materials Inventory account increased by $10,900. • Overhead is applied at the rate of 150 percent of direct labor cost. Sales are billed at 160 percent of cost of goods sold before the over- or underapplied overhead is prorated. • The balance in the Finished Goods Inventory account decreased by $28,000 during the month before any proration of under-or overapplied overhead. • Total credits to the Wages Payable account amounted to $201,000 for direct and indirect labor. • Factory depreciation totaled $46,730. • Overhead was underapplied by $25,480. Overhead other than indirect labor, indirect materials, and depreciation was $203,150, which required payment in cash. Underapplied overhead is to be allocated. The company has decided to allocate 25 percent of underapplied overhead to Work-in-Process Inventory, 15 percent to Finished Goods Inventory, and the balance to Cost of Goods Sold. Balances shown in T-accounts are before any allocation. Required: Complete the T-accounts. Not all amount fields to be populated have accompanying descriptions. BB (11/1) Dir.Materials 87,100
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter26: Manufacturing Accounting: The Job Order Cost System
Section: Chapter Questions
Problem 8SPB
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Question
Transcribed Image Text:Beg. Bal. (11/1)
Purchases
End. Bal. (11/30)
Beg. Bal. (11/1)
Bal.
End. Bal. (11/30)
Beg. Bal. (11/1)
Indirect materials
End. Bal. (11/30)
Materials Inventory
57,000
Finished Goods Inventory
98,000
98,000
Manufacturing Overhead Control
Direct materials
Indirect materials
Beg. Bal. (11/1)
Direct materials
Direct labor
Overhead applied
Bal.
End. Bal. (11/30)
Beg. Bal. (11/1)
End. Bal. (11/30)
Beg. Bal. (11/1)
End. Bal. (11/30)
Work-in-Process Inventory
33,200
87,100
120,300
120,300
Cost of Goods Sold
Applied Manufacturing Overhead
265,500
265,500
Transcribed Image Text:The following T-accounts represent November activity.
Materials Inventory
Work-In-Process Inventory
33,200
EB (11/30) 57,000
Finished Goods Inventory
Cost of Goods Sold
EB (11/30) 98,000
Manufacturing Overhead Control
Applied Manufacturing Overhead
265,500
Wages Payable
Sales Revenue
644,800
Additional Data
Materials of $115,100 were purchased during the month, and the balance in the Materials Inventory account increased by
$10,900.
• Overhead is applied at the rate of 150 percent of direct labor cost.
Sales are billed at 160 percent of cost of goods sold before the over- or underapplied overhead is prorated.
• The balance in the Finished Goods Inventory account decreased by $28,000 during the month before any proration of under-or
overapplied overhead.
• Total credits to the Wages Payable account amounted to $201,000 for direct and indirect labor.
Factory depreciation totaled $46,730.
• Overhead was underapplied by $25,480. Overhead other than indirect labor, indirect materials, and depreciation was $203,150,
which required payment in cash. Underapplied overhead is to be allocated.
• The company has decided to allocate 25 percent of underapplied overhead to Work-in-Process Inventory, 15 percent to Finished
Goods Inventory, and the balance to Cost of Goods Sold. Balances shown in T-accounts are before any allocation.
Required:
Complete the T-accounts. Not all amount fields to be populated have accompanying descriptions.
BB (11/1)
Dir.Materials 87,100
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