Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information is available for ADT Company, which produces specialorder security products and uses a job order costing system. Overhead is applied using a

image text in transcribedimage text in transcribed
The following information is available for ADT Company, which produces specialorder 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 End of of period Period Raw materials $ 45,000 $ 43,000 Work in process 9,800 19,700 Finished goods 64,000 34,600 Cost incurred for the period Raw materials purchases $ 100,000 Factory payroll 250,000 Factory overhead (actual) Indirect materials used 13,000 Indirect labor used 57,500 Other overhead costs 103,500 In the Raw Materials Inventory T-account, insert amounts for beginning and ending balances along with purchases and indirect aterials used. Solve for direct materials used in the period. Compute the cost of direct labor used for the period. In the Work in Process Inventory Taccount, insert amounts for beginning and ending balances along with direct materials used om part1), direct labor used (from part 2), and applied overhead. Solve for cost ofgoods manufactured in the period. In the Finished Goods Inventory Taccount, insert amounts for beginning and ending balances along with cost of goods anufactu red (from part 3). Solve for cost of goods sold in the period (do not consider any under- or overapplied overhead). In the Factory Overhead Taccount, insert amounts for indirect materials used, indirect labor used, other overhead costs, and )plied overhead. Solve for underapplied or overapplied overhead. Complete this question by entering your answers in the tabs below. Lequired 1 3 4 . and 5 Requlred 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. Show lessA Required 1 3 4 and 5 Required 2 Compute the cost of direct labor used for the period. Cost of direct labor used

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey of Accounting

Authors: Carl S Warren

5th Edition

9780538489737, 538749091, 538489731, 978-0538749091

More Books

Students also viewed these Accounting questions