Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 Raw materials $ 39,000 Work in process Finished goods 9,700 60,000 Beginning of period End of Period $31,000 18,400 33,400 Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Indirect materials used $ 175,000 250,000 7,000 Indirect labor used Other overhead costs 57,500 107,000 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 underappiled or overapplied overhead. Complete this question by entering your answers in the tabs below. Required 13 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. Beginning Purchases Raw Materials Inventory 39,000 175,000 Beginning Direct materials Beginning 7,000 Indirect materials Direct materials Direct labor 207,000 Overhead applied Ending Ending Ending Finished Goods Inventory Beginning Beginning Cost of goods manufactured Ending 0 Ending Work in Process Inventory Beginning Ending Factory Overhead Beginning Beginning Indirect materials Indirect labor 7,000 57,500 Other overhead Underapplied OH 107,000 171,500 Show less A

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

Principles of Financial Accounting

Authors: Belverd E. Needles, Marian Powers

12th edition

978-1133940562, 1133940560, 978-1285608464, 1285608461, 1133939287, 978-0357693605, 978-1285607047, 128560704X, 978-1133939283

More Books

Students also viewed these Accounting questions

Question

Define Administration?

Answered: 1 week ago

Question

Define Decision making

Answered: 1 week ago

Question

What are the major social responsibilities of business managers ?

Answered: 1 week ago

Question

What are some different uses of cost informa tion? (LO 1)

Answered: 1 week ago