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The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost.

Inventories	Beginning of period	End of Period
Raw materials	$ 33,000	$ 54,000
Work in process	9,100	18,500
Finished goods	61,000	34,500

Cost incurred for the period
Raw materials purchases	$ 198,000
Factory payroll	200,000
Factory overhead (actual)
Indirect materials used	9,000
Indirect labor used	46,000
Other overhead costs	97,500

1. In the Raw Materials Inventory T-account, insert amounts for beginning and ending balances along with purchases and indirect materials used. Solve for direct materials used in the period.
2. Compute the cost of direct labor used for the period.
3. In the Work in Process Inventory T-account, insert amounts for beginning and ending balances along with direct materials used (from part 1), direct labor used (from part 2), and applied overhead. Solve for cost of goods manufactured in the period.
4. In the Finished Goods Inventory T-account, insert amounts for beginning and ending balances along with cost of goods manufactured (from part 3). Solve for cost of goods sold in the period (do not consider any under- or overapplied overhead).
5. In the Factory Overhead T-account, insert amounts for indirect materials used, indirect labor used, other overhead costs, and applied overhead. Solve for underapplied or overapplied overhead.

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• Required 1 3 4 and 5
• Required 2

1. In the Raw Materials Inventory T-account, insert amounts for beginning and ending balances along with purchases and indirect materials used. Solve for direct materials used in the period. 3. In the Work in Process Inventory T-account, insert amounts for beginning and ending balances along with direct materials used (from part 1), direct labor used (from part 2), and applied overhead. Solve for cost of goods manufactured in the period. 4. In the Finished Goods Inventory T-account, insert amounts for beginning and ending balances along with cost of goods manufactured (from part 3). Solve for cost of goods sold in the period (do not consider any under- or overapplied overhead). 5. In the Factory Overhead T-account, insert amounts for indirect materials used, indirect labor used, other overhead costs, and applied overhead. Solve for underapplied or overapplied overhead.

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Raw Materials Inventory					Work in Process Inventory
Beginning	33,000		Beginning		Beginning			Beginning
Purchases	198,000	168,000	Direct materials		Direct materials	168,000		Cost of goods manufactured
		9,000	Indirect materials		Direct labor
					Overhead applied
Ending	54,000		Ending		Ending	168,000		Ending
Finished Goods Inventory					Factory Overhead
Beginning	61,000		Beginning		Beginning			Beginning
Cost of goods manufactured			Cost of goods sold			9,000
						46,000
Ending	61,000		Ending			97,500
						152,500