Materials Inventory Work-in-Process Inventory EB (11/30) 56,400 32,600 Dir. Mate
ID: 2518713 • Letter: M
Question
Materials Inventory Work-in-Process Inventory EB (11/30) 56,400 32,600 Dir. Materials 86,200 Finished Goods Inventory Cost of Goods Sold EB (1130) 101,000 Manufacturing Overhead Control Applied Manufacturing Overhead 264,000 Wages Payable Sales Revenue 725,400 Additional Data Materials of $113,600 were purchased during the month, and the balance in the Materials Inventory account increased by $11,000 Overhead is applied at the rate of 150 percent of direct labor cost. Sales are billed at 180 percent of cost of goods sold before the over- or underapplied overhead is prorated The balance in the Finished Goods Inventory account decreased by $28,600 during the month before any proration of under- or overapplied overhead Total credits to the Wages Payable account amounted to $202,000 for direct and indirect labor. Factory depreciation totaled $48,200 Overhead was underapplied by $25,080. Overhead other than indirect labor, indirect materials, and depreciation was $198,480, which required payment in cash. Underapplied overhead is to be allocated. The company has decided to allocate 25 percent of underapplied overhead to Work-in-Process Inventory, 15 percent to Finished Goods Inventory, and the balance to Cost of Goods Sold Balances shown in T-accounts are before any allocation. Required Complete the T-accountsExplanation / Answer
Materials Inventory
*the question says the material inventory increased by $11000. therefore the opening balance for the month will be $45400 (i.e 56400-11000).
**the materials consumed is the balancing figure.
Finished goods inventory
Cost of Goods sold
Wages Payable
Manufacturing overhead controls
Work In Progress Inventory
Applied Manufacturing Overhead
it is assumed that the sales revenue T ledger is updated for the month.
To BB(11/1) 45400 To accounts payable 113600 by Materials consumed** 102600 by EB (11/30) 56400 TOTAL 159000 TOTAL 159000