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ABC Co. recorded the following transactions for the just completed month. The company had no beginning inventories. $135,000 in raw materials were purchased on account.
ABC Co. recorded the following transactions for the just completed month. The company had no beginning inventories.
- $135,000 in raw materials were purchased on account.
- $112,000 in raw materials were requisitioned for use in production. Of this amount, $98,000 was for direct materials and the remainder was for indirect materials.
- Total labor wages of $145,000 were incurred and paid. Of this amount, $132,000 was for direct labor and the remainder was for indirect labor.
- Additional manufacturing overhead costs of $225,500 were incurred and paid.
- Manufacturing overhead costs of $240,000 were applied to jobs using the companys predetermined overhead rate.
- Of the jobs in progress at the end of the month, $350,500 were completed and shipped to customers.
- Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold.
Required:
1. Post the above transactions to T-accounts (only to the T-accounts shown below). Label each entry.
2. Determine the cost of goods sold for the period.
Raw Material | Work in Process | ||||
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Manufacturing O/H | Finished Goods | ||||
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Cost of Goods Sold | |||||
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