Determine and Use Manufacturing Overhead Rate

The following selected ledger accounts of the Lakewood Manufacturing Company are for May $($the fifth month of its accounting year$)$:

Material Inventory

May $1$ balance $40,000$ May credits $145,000$

May debits $125,000$

Factory Overhead

May debits $160,000$ May $1$ balance $14,000$

May credits $171,000$

Work in Process Inventory

May $1$ balance $28,000$ May credits $480,000$

May debits:

Direct material $129,000$

Direct labor $180,000$

Man. overhead $171,000$

Factory Payroll Payable

May debits $200,000$ May $1$ balance $50,000$

May credits $196,000$

Finished Goods Inventory

May $1$ balance $102,000$ May credits $500,000$

May debits $480,000$

a$.$ Determine the amount of indirect material requisitioned for production during May.

$Answer

$21,000$

b$.$ How much indirect labor cost was apparently incurred during May?

$Answer

$16,000$

c$.$ Calculate the manufacturing overhead rate based on direct labor cost.

Answer

$80$

$\%$

d$.$ Was manufacturing overhead for May under$-$ or over$-$applied, and by what amount?

Manufacturing overhead was Answer

under$-$applied

by $Answer

$16,000$

for May.

e$.$ Was manufacturing overhead for the first five months of the year under$-$ or over$-$applied, and by what amount?

Manufacturing overhead was Answer

under$-$applied

by $Answer

$2,000$

for the first five months.

f$.$ What is the cost of production completed in May?

$Answer

$440,000$

g$.$ What is the cost of goods sold in May?

$Answer

$510,000$