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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

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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 over- or underapplied overhead is prorated - Materials of $82,900 were purchased during the month, and the balance in the Materials Inventory account increased by $8,900 - Overhead is applied at the rate of 210 percent of direct materials cost. - The balance in the Finished Goods Inventory account decreased by $24,500 during the month before any proration of under-or overapplied overhead. - Total credits to the Wages Payable account amounted to $140,100 for direct and indirect labor. - Factory depreciation totaled $37,500 - Overhead was overapplied by $20,400 Overhead other than indirect labor, indirect materials, and depreciation incurred was $59,650, 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 ta Finished Goods Inventory, and the balance to Cost of Goods Sold Balances shown in T-accounts are before any allocation. Manulacturing Overhead Control

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