Selected ledger accounts for Realm Company are given below for the just-completed year: Raw Materials Bal....

  
 
 

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Selected ledger accounts for Realm Company are given below for the just-completed year: Raw Materials Bal. 1/1 45, 000 495, 000 Credits Debits Bal. 31/12 90, 000 Manuf acturing Overhead Debits 437, 000 Credits Work in Process Bal. 1/1 92, 500 350, 000 140, 000 Credits 936, 100 Direct materials Direct labour Overhead 455, 000 Bal. 31/12 Factory Wages Payable Debits Bal. 1/1 25, 000 212, 500 216, 500 Credits Bal. 31/12 21, 000 Finished Goods Bal. 1/1 67, 000 Credit Debits ? Bal. 31/12 175, 000 Cost of Goods Sold Debits Required: 1. What was the cost of raw materials put into production during the year? Cost of raw materials 2. How much of the materials in requirement 1 consisted of indirect materials? Indirect materials 3. How much of the factory labour cost for the year consisted of indirect labour? Indirect labour cost 4. What was the cost of goods manufactured for the year? Cost of goods manufactured 5. What was the cost of goods sold for the year (before considering underapplied or overapplied overhead)? Cost of goods sold 6. If overhead is applied to production on the basis of direct materials cost, what rate was in effect during the year? Predetermined overhead % rate 7. Was manufacturing overhead underapplied or overapplied? By how much? Manufacturing overhead was by 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 $33,500 of this balance is direct materials cost, how much of it is direct labour cost? Manufacturing overhead cost? Ending balance in the work in process Direct labour cost Manufacturing overhead cost Selected ledger accounts for Realm Company are given below for the just-completed year: Raw Materials Bal. 1/1 45, 000 495, 000 Credits Debits Bal. 31/12 90, 000 Manuf acturing Overhead Debits 437, 000 Credits Work in Process Bal. 1/1 92, 500 350, 000 140, 000 Credits 936, 100 Direct materials Direct labour Overhead 455, 000 Bal. 31/12 Factory Wages Payable Debits Bal. 1/1 25, 000 212, 500 216, 500 Credits Bal. 31/12 21, 000 Finished Goods Bal. 1/1 67, 000 Credit Debits ? Bal. 31/12 175, 000 Cost of Goods Sold Debits Required: 1. What was the cost of raw materials put into production during the year? Cost of raw materials 2. How much of the materials in requirement 1 consisted of indirect materials? Indirect materials 3. How much of the factory labour cost for the year consisted of indirect labour? Indirect labour cost 4. What was the cost of goods manufactured for the year? Cost of goods manufactured 5. What was the cost of goods sold for the year (before considering underapplied or overapplied overhead)? Cost of goods sold 6. If overhead is applied to production on the basis of direct materials cost, what rate was in effect during the year? Predetermined overhead % rate 7. Was manufacturing overhead underapplied or overapplied? By how much? Manufacturing overhead was by 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 $33,500 of this balance is direct materials cost, how much of it is direct labour cost? Manufacturing overhead cost? Ending balance in the work in process Direct labour cost Manufacturing overhead cost

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