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 20,000 May credits 75,000 May debits 62,500 Factory Overhead May debits 80,000 May 1 balance 7,000 May credits 72,000 Work in Process Inventory May 1 balance 14,000 May credits 220,000 May debits: Direct material 64,500 Direct labor 90,000 Man. overhead 72,000 Factory Payroll Payable May debits 114,000 May 1 balance 25,000 May credits 98,000 Finished Goods Inventory May 1 balance 51,000 May credits 255,000 May debits 220,000 a. Determine the amount of indirect material requisitioned for production during May. $Answer b. How much indirect labor cost was apparently incurred during May? $Answer c. Calculate the manufacturing overhead rate based on direct labor cost. Answer % d. Was manufacturing overhead for May under- or over-applied, and by what amount? Manufacturing overhead was Answer by $Answer 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 by $Answer for the first five months. f. What is the cost of production completed in May? $Answer g. What is the cost of goods sold in May? $Answer Copyright 2021 Cambridge Business Publishers , All Rights Reserved | Terms of Use | Privacy Policy | Return Policy | User Guide | Browser Support