Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following T-accounts represent September activity for Kelly Tools: Additional Data - Sales are billed at 175 percent of Cost of Goods Sold before the
The following T-accounts represent September activity for Kelly Tools: Additional Data - Sales are billed at 175 percent of Cost of Goods Sold before the over-or underapplied overhead is prorated. - Materials of $80,100 were purchased during the month, and the balance in the Materials Inventory account increased by $7,500 - Overhead is applied at the rate of 210 percent of direct materials cost. - The balance in the Finished Goods Inventory account decreased by $22,400 during the month before any proration of under- or overapplied overhead. - Total credits to the Wages Payable account amounted to $138,000 for direct and indirect labor. - Factory depreciation totaled $35,400. - Overhead was overapplied by $19,000. Overhead other than indirect labor, indirect materials, and depreciation incurred was $57,550, which required payment in cash. Overapplied overhead is to be allocated. - The company has decided to allocate 12 percent of overapplied overhead to Work-in-Process Inventory, 23 percent to Finished Goods Inventory, and the balance to Cost of Goods Sold. Balances shown in T-accounts are before any allocation. Required: Complete the T-accounts. Not all amount fields to be populated have accompanying descriptions: Complete the T-accounts. Not all amount fields to be populated have accompanying descriptions
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started