Rock It Out had the following account balances on January 1: Cash: $836,000 Raw Materials: $18,500 WIP:
Question:
Rock It Out had the following account balances on January 1:
Cash: $836,000
Raw Materials: $18,500
WIP: $115,400
Finished Goods Inventory $45,600
The following took place during the year:
1. Purchased raw material with cash $173,600. |
2. Put material into production: $129,000 of direct material $12,000 of indirect material. |
3. Paid payroll: $158,000 in wages to direct labor $93,000 salary for supervisors |
4. Applied OH based on a pre-determined rate of $13 per machine hour. Actual machine hours were 9,950. |
5. Incurred and paid other overhead items of $35,000. |
6. Transferred items costing $473,500 to finished goods. |
7. Sold goods costing $453,900 for cash of $886,200. |
Assume that the Raw Material Inventory account contains both direct and indirect material. The company uses normal costing.
- What is the ending balance of the raw materials account for Dec 31?
- What is the ending balance of the WIP account for Dec 31?
- What is the ending balance of the Finished Goods account for Dec 31?
- How much is revenue?
- How much is COGS before closing the MOH account?
- How much was over- or under-applied OH?
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078025778
17th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello