On the first day of its accounting period. Aus has the following beginning balances:

Raw Materials Inventory $ 7,000

Work in Process Inv. 30,000

Finished Goods Inv. 10,000

The following represent summary transactions for the entire period.

1. During the period, Raw Material purchases amount to $60,000.

2. Raw materials totaling $52,000 were requisitioned for use in production. Of this amount, $50,000 was direct material and $2,000 was indirect material.

3. Labor costs were determined from employee time tickets, as follows:

Direct labor, $60,000; Indirect labor, 15,000.

4. Redco incurred the following overhead costs:

Utilities, $40,000; Property taxes, $13,000; Insurance, $7,000;

and Depreciation on factory equipment, $18,000.

5. Assume that Redco uses machine hours as its activity base to apply overhead. It has computed a POR (predetermined overhead rate) of $6 per machine hour. During the period, 15,000 machine hours were worked.

6. During the period, jobs with a total cost of $158,000 were completed and transferred to Finished Goods Inventory.

7. During the period, goods costing $118,500 were sold to customers for total sales revenue of $225,000.

8. Assume that it is now the end of the accounting period. The Mfg. Overhead account must be closed; it is a temporary account. Determine

Fill in the T accounts

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T ACCOUNT GROUP EXERCISE – MGMT 201 Fill in the given information on the T accounts. Use the T accounts to complete the requirements in the problem. Raw Materials Inventory Work in Process Inventory Finished Goods Wages Payable Inventory Cost of Goods Sold Manufacturing Overhead T ACCOUNT GROUP EXERCISE – MGMT 201 Fill in the given information on the T accounts. Use the T accounts to complete the requirements in the problem. Raw Materials Inventory Work in Process Inventory Finished Goods Wages Payable Inventory Cost of Goods Sold Manufacturing Overhead

Answer rating: 100% (QA)

Answer Solution RAW MATERIAL INVENTORY 7000 WIP Inventory 60000 Manufacturing OH En... View the full answer