The following T-accounts represent November activity. Materials Inventory EB (11/30) 56,482 Work-In-Process Inventory BB (11/1) 32,600 Dir.Materials 86,200 Cost of Goods Sold Finished Goods Inventory EB (11/30) 101, eee Manufacturing Overhead Control Applied Manufacturing Overhead 264,000 Sales Revenue 725,488 Wages Payable Additional Data Materials of $113,600 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 180 percent of Cost of Goods Sold before the over- or underapplied overhead is prorated. . The balance in the Finished Goods Inventory account decreased by $28,600 during the month before any proration of under-or overapplied overhead. Total credits to the Wages Payable account amounted to $202,000 for direct and indirect labor. Factory depreciation totaled $48,200. Overhead was underapplied by $25.080. Overhead other than indirect labor, indirect materials, and depreciation was $198.480. 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 Beg Bal (11/1) Work-in-Process Inventory 32,600 86,2001 Purchases Direct materials Indirect materials Beg. Bal (11/1) Direct materials Direct labor Overhead applied End. Bal. (11/30) 56,400 118.800 End Bal (11/30) 118.800 Finished Goods Inventory Cost of Goods Sold Bog bal (11/1) Beg bal. (11/1) 101 000 End bal (11/30) 101.0001 End bal (11/30) The following T-accounts represent November activity. Materials Inventory EB (11/30) 56,482 Work-In-Process Inventory BB (11/1) 32,600 Dir.Materials 86,200 Cost of Goods Sold Finished Goods Inventory EB (11/30) 101, eee Manufacturing Overhead Control Applied Manufacturing Overhead 264,000 Sales Revenue 725,488 Wages Payable Additional Data Materials of $113,600 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 180 percent of Cost of Goods Sold before the over- or underapplied overhead is prorated. . The balance in the Finished Goods Inventory account decreased by $28,600 during the month before any proration of under-or overapplied overhead. Total credits to the Wages Payable account amounted to $202,000 for direct and indirect labor. Factory depreciation totaled $48,200. Overhead was underapplied by $25.080. Overhead other than indirect labor, indirect materials, and depreciation was $198.480. 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 Beg Bal (11/1) Work-in-Process Inventory 32,600 86,2001 Purchases Direct materials Indirect materials Beg. Bal (11/1) Direct materials Direct labor Overhead applied End. Bal. (11/30) 56,400 118.800 End Bal (11/30) 118.800 Finished Goods Inventory Cost of Goods Sold Bog bal (11/1) Beg bal. (11/1) 101 000 End bal (11/30) 101.0001 End bal (11/30)
