Directions: Arrange the below accounts in the cost flow order, and determine the unknown numbers and the ending balances for each account. Indicate if overhead is overapplied or underapplied. Close the overapplied or underapplied Factory Overhead to Cost of Goods Sold. Finished Goods Inventory Beginning Balance 85,000 Transferred In Unknown Transferred Out 750,000 Ending Balance Unknown Materials Inventory Beginning Balance 1,250,000 Purchases Unknown Direct materials used Unknown Indirect materials used Unknown Ending Balance 1,185,000 Wages Payable Total Factory Payroll 2,600,000 Direct Labor 850,000 Indirect Labor Unknown Work in Process Inventory Beginning Balance 1,100,000 Direct Materials 990,000 Direct Labor Unknown Factory Overhead Unknown Transferred Out 1,895,000 Ending Balance Unknown

2 Factory Overhead Factory Overhead is applied based on direct labor costs. Estimated factory overhead 1,375,000 Estimated direct labor costs 500,000 Actual Other Factory Overhead 1,600,000 Actual Indirect Materials Used 75,000 Cost of Goods Sold Beginning Balance 25,000 Transferred In Unknown Ending Balance Unknown