PROBLEM FOR SELF-STUDY 135 PROBLEM FOR SELF-STUDY Your manager asks you to bring the following incomplete accounts of Endeavor Printing Inc. up to date through Lanuary 31, 2017. Consider the data that appear in the T-accounts as well as the following information in items cal through Endeavor's normal-costing system has two direct cost categories direct material costs and direct manufacturing lahor costs) and one indirect-cost pool manufacturing overhead costs. which are allocated using direct manufacturing labor con Materials Castrol Wages Payable Control 12-31-2016 Bal 30,000 1-31-2017 Bal 6.000 Work-in-Process Control Manufacturing Overhead Control 1-31-2017 Bal 114.000 Costs of Goods Sold Finished Goods Control 12-31-2016 Bal 40.000 Additional information follows: Manufacturing overhead is allocated using a budgeted rate that is set every December You forecast next year's manufacturing overhead costs and not year's direct manufactur- ing labor costs. The budget for 2017 is $1,200,000 for manufacturing overhead costs and S800,000 for direct manufacturing labor costs. b. The only job unfinished on January 31, 2017 is No. 419, on which direct manufacturing labor costs are $4.000 (250 direct manufacturing laboe-hours) and direct material costs are $ 16,000. c. Total direct materials issued to production during January 2017 are $180,000 d. Cost of goods completed during January is $360,000. e. Materials inventory as of January 31, 2017, is $40,000 f. Finished-poods inventory as of January 31, 2017, is $30,000 All plant workers earn the same wage rate. Direct manufacturing labor-hours used for January total 5,000 hours. Other labor costs total $20,000 h. The gross plant payroll paid in January equals $104,000. Ignore withholdings, 1. All actual manufacturing overhead cost incurred during January has already been posted j. All materials are direct materials. Calculate the following: 1. Materials purchased during January 2. Cost of Goods Sold during January 3. Direct manufacturing labor costs incurred during January 4. Manufacturing Overhead Allocated during January 5. Balance, Wages Payable Control, December 31, 2016 6. Balance, Work-in-Process Control, January 31, 2017 7. Balance, Work-in-Process Control, December 31, 2016 8. Manufacturing Overhead Underallocated or Overallocated for January 2017 Solution Amounts from the T-accounts are labeled "(T)." 1. From Materials Control T-account, Materials purchased: $180,000 (c) + S40,000 (e) - $30,000 (T) = $190,000 2. From Finished Goods Control T-account, Cost of Goods Sold: $40,000 (T) + $360,000 (d) - $30,000 (f) = $370,000