Using T accounts to represent various manufacturing accounts reflect the flow of the costs for this calendar
Question:
Using T accounts to represent various manufacturing accounts reflect the flow of the costs for this calendar quarter as summarized below.
Account balances at the start of the quarter are: Materials, $218,000; Work in process, -0-; Finished goods, $240,000; Factory labor, -0-; Manufacturing overhead, $26,800; Cost of goods sold, $324,000.
Materials purchased during the quarter, $182,000; materials issued to maintenance crew cost, $12,400; materials put into production cost, $204,000.
Labor cost incurred during the quarter, $386,000; $352,000 of this was direct labor for the production of goods and the balance was for the cost of maintenance and supervisory staffs.
Various manufacturing overhead expenses were paid or accrued totaling $74,400.
Overhead costs are allocated to production at 30% of direct labor costs.
The cost of manufactured goods completed during the quarter was $610,000.
Ending inventories were: Materials, Work in Process, and Finished Goods, $215,000
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello