Question
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
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 70% of direct labor cost.
Inventories {:[" Beginning of "],[" Period "]:} End of Period Raw materials $43,000 $52,000 Work in process 10,200 21,300 Finished goods 63,000 35,600
Cost incurred for the period Raw materials purchases $210,000 Factory payroll 345,000 Factory overhead (actual) Indirect materials used 15,000 Indirect labor used 80,000 Other overhead costs 120,000
- In the Raw Materials Inventory T-account, insert amounts for beginning and ending balances along with purchases and indirect materials used.
- Compute the cost of direct labor used for the period.
- 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.
- 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 over applied overhead).
- In the factory overhead t-account, insert amounts for the indirect materials used, indirect labor used, other overhead costs, and applied overhead. Solve for underapplied or overapplied overhead.
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