Question 7 Please answer the following questions relating to Ranjot and Himanshu company accounts ( in thousands of dollars ) Raw Materials Bal Beg 100 Credits Debits 900 Bal End 156 Manufacturing Overhead Debits 2202 Credits Wages Salaries Payable Debits 1300 Bal Beg 200 Credits 1206 Bal End 106 Cost of Goods Sold Debits Work in Process Bal Beg 100 Credits 3506 Dir Mat 705 Dir Lab 1000 Overhead BalEnd 2007 Finished Goods Bal Beg 100 Credits Debits Bal End250 Required What was the cost of raw materials put into production during the year How much of the materials in part (1) consisted of indirect materials How much of the factory labour cost for the year consisted of indirect labour What was the cost of goods manufactured for the year What was the cost of goods sold for the year (before considering under or overapplied overhead) If overhead is applied to production on the basis of direct labour cost, what rate was in effect during the year Was manufacturing overhead under or over applied By how much Compute the ending balance in the work in process inventory account Assume that this balance consists entirely of goods started during the year If $75,600 of this balance is direct labour cost, how much of it is direct material cost Manufacturing overhead cost

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Question 7 Please answer the following questions relating to Ranjot and Himanshu company accounts ( in thousands of dollars ): Raw Materials Bal Beg. 100

Question 7

Please answer the following questions relating to Ranjot and Himanshu company accounts (in thousands of dollars):

Raw Materials

Bal Beg.

100

Credits

Debits

900

Bal. End

----------156

Manufacturing Overhead

Debits

2202

Credits

Wages & Salaries Payable

Debits

1300

Bal Beg.

200

Credits

1206

--------

Bal End

106

Cost of Goods Sold

Debits

Work in Process

Bal Beg.

100

Credits

3506

Dir Mat

705

Dir Lab

1000

Overhead

BalEnd

2007

Finished Goods

Bal Beg.100

Credits ?

Debits?

---------

Bal End250

Required:

What was the cost of raw materials put into production during the year?
How much of the materials in part (1) consisted of indirect materials?
How much of the factory labour cost for the year consisted of indirect labour?
What was the cost of goods manufactured for the year?
What was the cost of goods sold for the year (before considering under- or overapplied overhead)?
If overhead is applied to production on the basis of direct labour cost, what rate was in effect during the year?
Was manufacturing overhead under- or over - applied? By how much?

Compute the ending balance in the work-in-process inventory account. Assume that this balance consists entirely of goods started during the year. If $75,600 of this balance is direct labour cost, how much of it is direct material cost? Manufacturing overhead cost?