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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 $78,100 were purchased during the month, and the balance in the Materials Inventory account increased by $6,500 - Overhead is applied at the rate of 210 percent of direct materials cost. - The balance in the Finished Goods Inventory account decreased by $20,900 during the month before any proration of under- or overapplied overhead. - Total credits to the Wages Payable account amounted to $136,500 for direct and indirect labor. - Factory depreciation totaled $33,900. - Overhead was overapplied by $18,000. Overhead other than indirect labor, indirect materials, and depreciation incurred was $56,050, 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 percen 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
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