QUESTION 2 (25 MARKS) Below are the selected T- accounts of Merci Company for the vear ended 31 December 2016: Raw Materials 15,000 Credit 120,000 Bal c/d XXX 25,000 Bal b/d Debit Manufacturing overhead 20,000 Credit Bal b/d XXX Work in Progress 20,000 Credit 90,000 150,000 240,000 Bal c/d 470,000 Bal b/d Direct Materials Direct Labor Overhead XXX Finished Goods 20,000 XXX XXX 60,000 Credits Bal c/d Bal b/d Debits Salaries & Wages Payable 185,000 4,000 Credit Debit Bal c/d Bal b/d 9,000 180,000 Required: Compute the cost of raw materials used for production. a) (2 marks) Determine the indirect material cost inclusive in the materials required in (a). b) (2 marks) c) Determine the factory labor cost for the year consisted of indirect material. (2 marks) Compute the cost of goods manufactured. d) (2 marks) e) Compute the unadjusted cost of goods sold (before considering under applied or over applied overhead). (2 marks) ACCTI 201/June2017 Page 8 of 11 Determine the predetermined overhead rate if the overhead applied is based on the direct labor cost. (4 marks) Compute the over/under applied overhead. 8) (3 marks) h) Compute the ending balance in the Work in Process inventory account. (3 marks) i) Determine the direct material costs and manufacturing overhead cost if RM8,000 of this balance is direct labor cost. (5 marks) QUESTION 2 (25 MARKS) Below are the selected T- accounts of Merci Company for the vear ended 31 December 2016: Raw Materials 15,000 Credit 120,000 Bal c/d XXX 25,000 Bal b/d Debit Manufacturing overhead 20,000 Credit Bal b/d XXX Work in Progress 20,000 Credit 90,000 150,000 240,000 Bal c/d 470,000 Bal b/d Direct Materials Direct Labor Overhead XXX Finished Goods 20,000 XXX XXX 60,000 Credits Bal c/d Bal b/d Debits Salaries & Wages Payable 185,000 4,000 Credit Debit Bal c/d Bal b/d 9,000 180,000 Required: Compute the cost of raw materials used for production. a) (2 marks) Determine the indirect material cost inclusive in the materials required in (a). b) (2 marks) c) Determine the factory labor cost for the year consisted of indirect material. (2 marks) Compute the cost of goods manufactured. d) (2 marks) e) Compute the unadjusted cost of goods sold (before considering under applied or over applied overhead). (2 marks) ACCTI 201/June2017 Page 8 of 11 Determine the predetermined overhead rate if the overhead applied is based on the direct labor cost. (4 marks) Compute the over/under applied overhead. 8) (3 marks) h) Compute the ending balance in the Work in Process inventory account. (3 marks) i) Determine the direct material costs and manufacturing overhead cost if RM8,000 of this balance is direct labor cost