Selected lodger accounts of Moore Company are given below for the just completed year:

Required:

1. What was the cost of raw materials put into production during the year?

2. How much attic materials in (I) above consisted of indirect materials?

3. How much of the factory labour cost for the year consisted of indirect labour?

4. What was the cost of goods manufactured for the year?

5. What was the cost of goods sold for the year (before considering under- or over applied overhead)?

6. If overhead is applied to production on the basis of direct labour cost, what rate was in effect during the year?

7. Was manufacturing overhead under- or over applied? 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 $8,000 of this balance is direct labour cost, how much of it is direct materials cost? Manufacturing overhead cost?

Transcribed Image Text:

Bal. 1/1 Debits Bal. 12/31 Raw Materials 15,000 Credits 120,000 25,000 Debits Manufacturing Overhead 230,000 Credits ? Bal. 1/1 Direct materials Direct labour Overhead Bal. 12/31 Bal. 1/1 Debits Bal. 12/31 Work in Process 20,000 Credits 90,000 150,000 240,000 Finished Goods 40,000 Credits ? 60,000 470,000 Debits Debits Factory Wages Payable 185,000 Bal. 1/1 Credits Bal. 12/31 Cost of Goods Sold 9,000 180,000 4,000 Bal. 1/1 Debits Bal. 12/31 Raw Materials 15,000 Credits 120,000 25,000 Debits Manufacturing Overhead 230,000 Credits ? Bal. 1/1 Direct materials Direct labour Overhead Bal. 12/31 Bal. 1/1 Debits Bal. 12/31 Work in Process 20,000 Credits 90,000 150,000 240,000 Finished Goods 40,000 Credits ? 60,000 470,000 Debits Debits Factory Wages Payable 185,000 Bal. 1/1 Credits Bal. 12/31 Cost of Goods Sold 9,000 180,000 4,000

Answer rating: 100% (QA)

1 Cost of raw materials raw materials that have not been put into the production process and is repr... View the full answer