P4.36 LO 4.6 Flow of manufacturing costs; incomplete data Fine Finish Ltd manufactures furniture. Due to a fire in the administrative offices, the accounting records for November of the current year were partially destroyed. You have been able to piece together the following information from the ledger.

By examining various source documents and interviewing several employees, you are able to gather the following additional information: Collection of accounts receivable during November amounts to $615000. Sales revenue in November is 120 per cent of cost of goods sold. All sales are on credit. Overhead is applied using an annual predetermined overhead rate based on direct labour hours. The budgeted overhead for the current year is $2160000. Budgeted direct labour cost for the current year is $2880 000. The direct labour rate is $20 per hour. The accounts payable balance on 30 November is $3000. Only purchases of raw material are credited to accounts payable. A payment of $243000 was made on 15 November. November's cost of goods sold amounts to $540000. The 30 November balance in finished goods inventory is $15000. Payments of $238500 were made to direct labour employees during November. The 31 October balance in the wages payable account is $3000. The actual manufacturing overhead for November is $180000. An analysis of the furniture still in process on 30 November reveals that so far these items have required 500 hours of direct labour and $61500 of direct material. Required 1. Calculate the following amounts:

(a) sales revenue for November

(b) 30 November balance in accounts receivable

(c) cost of raw material purchased during November

(d) 30 November balance in work in process inventory

(e) direct labour added to work in process during November

(f) applied overhead for November (g) cost of goods completed during November (h) raw material used during November

(i) 31 October balance in raw material inventory (j) overapplied or underapplied overhead for November. 2. Complete the ledger accounts given in the problem.

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Raw material inventory 120000 Accounts payable 36000 Bal. 31/10 Bal. 30/11 135000 Work in process inventory Finished goods inventory Bal. 31/10 24000 Manufacturing overhead 180000 Wages payable Bal. 31/10 105000 Cost of goods sold Sales revenue 4500 Bal. 30/11 Accounts receivable Bal. 31/10 240000