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Telstar uses job order costing. The T-accounts below summarize its production activity for the year. Raw Materials Inventory Debit 45,100 Credit 24,350 8,100 Factory
Telstar uses job order costing. The T-accounts below summarize its production activity for the year. Raw Materials Inventory Debit 45,100 Credit 24,350 8,100 Factory Wages Payable Debit 126,100 Credit 85,850 40,350 Work in Process Inventory Finished Goods Inventory Debit 24,350 85,850 102,784 Credit Debit Credit 170,420 170,420 153,390 1. Compute the amount for each of the following. a. Direct materials used b. Indirect materials used c. Direct labor used d. Indirect labor used e. Cost of goods manufactured f. Cost of goods sold (before closing over- or underapplied overhead) 2. Compute the amount that overhead is overapplied or underapplied. Factory Overhead Debit Credit 8,100 102,784 40,350 61,470 Required 1 Required 2 Compute the amount for each of the following. a. Direct materials used b. Indirect materials used c. Direct labor used d. Indirect labor used e. Cost of goods manufactured f. Cost of goods sold (before closing over- or underapplied overhead) Required 1 Required 2 Compute the amount that overhead is overapplied or underapplied.
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