The following T-accounts represent manufacturing cost flows for Lincoln Manufacturing Company for the year 2012.

Required:
1. Identify the following amounts for 2012 from Lincoln's T-accounts:
a. Direct labor cost
b. Cost of goods manufactured
c. Cost of goods sold
d. Actual manufacturing overhead costs
2. Prepare a Cost of Goods Manufactured schedule for 2012.
3. Prepare a Cost of Goods Sold schedule for 2012.
4. Interpretive Question: Explain how the over- or under-applied manufacturing overhead is usually accountedfor.

Transcribed Image Text:

Work-in-Process Inventory Direct Materials Inventory 1/1 700,000 60,000 230,000 1/1 70,000 200,000 230,000 12/31 30,000 300,000 160,000 12/31 60,000 Finished Goods Inventory Manufacturing Overhead 20,000 1/1 110,000 760,000 1/1 160,000 700,000 32,000 12/31 50,000 14,000 48,000 42,000 4,000 12/31