e) continued... Journal entry for completion of jobs in JAN ()Finished Goods Inventory 84,000 Work in Process Inventory 84,000 More Below T account)Work in Processaccount) Beginning balance Direct materials Direct labo Manufacturing overhead 35,200 Ending balance Cost of jobs 25 and 26 35,200 The balance in this account of the current costs assigned to Job No. 27 Direct Materials Direct Labor$13,000 Total costs assigned 9,000 (h) Manufacturing T account) Overhead Actual Applied (debit) (crodit) Bal (Indicate either "underapplied"or 'overapplied" below) The balance in the Manufacturing Overhead account is underapplied or overapplied. Indicate one or the other)
Materials of$113,800 were purchased during the month, and the balance in theMaterials Inventory account increased by $11,300.
(b)
Overhead is applied at the rateof 150 percent of direct labor cost.
(c)
Sales are billed at 160 percentof cost of goods sold before the over- or underapplied overhead isprorated.
(d)
The balance in the FinishedGoods Inventory account decreased by $29,000 during the monthbefore any proration of under- or overapplied overhead.
(e)
Total credits to the WagesPayable account amounted to $200,000 for direct and indirectlabor.
(f)
Factory depreciation totaled$58,250.
(g)
Overhead was underapplied by$26,020. Overhead other than indirect labor, indirect materials,and depreciation was $202,070, which required payment in cash.Underapplied overhead is to be allocated.
(h)
The company has decided toallocate 25 percent of underapplied overhead to Work-in-ProcessInventory, 15 percent to Finished Goods Inventory, and the balanceto Cost of Goods Sold. Balances shown in T-accounts are before anyallocation.
What was the cost of raw materials put into 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 cost of goods sold for the year (before considering underapplied or overapplied overhead)?
6.
If overhead is applied to production on the basis of direct labor cost, what rate was in effect during the year? (Round your percentage answer to 2 decimal (i.e., 0.1234 needs to be considered as 12.34.))
7.
Was manufacturing overhead underapplied or overapplied? By how much?
8.
Compute the ending balance in the Work in Process inventory account. Assume that this balance consists entirely of goods started during the year. If $32,800 of this balance is direct labor cost, how much of it is direct materials cost? Manufacturing overhead cost? (Round your predetermined overhead rate percentage and final answers to 2 decimal places.)
