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The following T-accounts represent November activity. Materials Inventory EB (11/30) 56,600 Finished Goods Inventory EB (11/30) 101,000|| Manufacturing Overhead Control Wages Payable Additional Data
The following T-accounts represent November activity. Materials Inventory EB (11/30) 56,600 Finished Goods Inventory EB (11/30) 101,000|| Manufacturing Overhead Control Wages Payable Additional Data Work-In-Process Inventory BB (11/1) Dir. Materials 32,800 86,900 Cost of Goods Sold Applied Manufacturing Overhead 265,500 Sales Revenue 760,000 Materials of $112,300 were purchased during the month, and the balance in the Materials Inventory account increased by $11,000. Overhead is applied at the rate of 150 percent of direct labor cost. Sales are billed at 190 percent of cost of goods sold before the over- or underapplied overhead is prorated. The balance in the Finished Goods Inventory account decreased by $28,700 during the month before any proration of under- or overapplied overhead. Total credits to the Wages Payable account amounted to $204,000 for direct and indirect labor. Factory depreciation totaled $53,730. Overhead was underapplied by $24,240. Overhead other than indirect labor, indirect materials, and depreciation was $194,610, which required payment in cash. Underapplied overhead is to be allocated. The company has decided to allocate 25 percent of underapplied overhead to Work-in-Process Inventory, 15 percent to Finished Goods Inventory, and the balance to Cost of Goods Sold. Balances shown in T-accounts are before any allocation. Materials Inventory Work-in-Process Inventory Beg. Bal. (11/1) Purchases 45,000 112,300 86,900 Direct materials 13,800 Indirect materials Beg. Bal. (11/1) Direct materials Direct labor Overhead applied 32,800 86,900 End. Bal. (11/30) 56,600 Bal. 119,700 End. Bal. (11/30) 119,700 Finished Goods Inventory Cost of Goods Sold Beg. Bal. (11/1) Beg. Bal. (11/1) Bal. 101,000 End. Bal. (11/30) 101,000 End. Bal. (11/30) Manufacturing Overhead Control Applied Manufacturing Overhead Beg. Bal. (11/1) Beg. Bal. (11/1) 265,500 Indirect materials End. Bal. (11/30) 265,500 Wages Payable Beg. Bal. (11/1) End. Bal. (11/30) Beg. Bal. (11/1) Direct labor End. Bal. (11/30) Sales Revenue 760,000 760,000
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