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.

InventoriesBeginning of periodEnd of PeriodRaw materials$ 47,000$ 43,000Work in process9,60019,900Finished goods54,00034,600Cost incurred for the periodRaw materials purchases$ 187,000Factory payroll200,000Factory overhead (actual)Indirect materials used11,000Indirect labor used46,000Other overhead costs108,500

Exercise 15-12 (Algo) Computing materials, labor, overhead, and cost of goods manufactured LO P1, P2, P3, P4

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.

Raw Materials InventoryWork in Process InventoryBeginningBeginningBeginningPurchasesIndirect materialsDirect materialsDirect materialsDirect laborOverhead appliedEndingEndingEndingEndingFinished Goods InventoryFactory OverheadBeginningBeginningBeginningBeginningCost of goods manufacturedCost of goods soldIndirect materialsOverhead appliedIndirect laborEndingEndingOther overhead

• Required 1 3 4 and 5

Compute the cost of direct labor used for the period.

The cost of direct labor for the periodCost of direct labor used

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