Question
The Toronto company uses a job-order normal costing system. They apply overhead at a predeterminded rate of 50 percent of direct labor cost. At the
The Toronto company uses a job-order normal costing system. They apply overhead at a predeterminded rate of 50 percent of direct labor cost. At the beginning of the current year, the balances in the factory-related accounts were as follows:
Raw materials 12,000 Work in process 6,000 Finished Goods 34,000 Accounts Payable(used only for raw material purchases) 25,000 Wages Payable 14,000 Accum Depr-Factory Assests 95,000 Factory Prepaid Insurance 3,000
The following information is available concerning the activity for the current year:
Indirect Materials Used 20,000 Direct Labor cost 160,000 Unadjusted cost of goods sold 320,000 Cash paid for factory wages** 206,000 Factory property taxes paid 12,000 Raw material purchases*** 100,000
**All Factory wages are Accrued, then paid in cash. ***All raw material purchases are on account.
One job was still in process at the end of the current year. Direct materials of $500 and $2,000 of direct labor had been charged to the job. Other balances at the end of the current year were as follows:
Finished goods 26,000 Accounts payable 36,000 Wages payable 8,000 Accum Depr-Factory Assests 105,000 Factory Prepaid Insurance 2,000
Using a T-account cost flow diagram,determine: 1.Applied Overhead 2.The ending work in process balance 3.Cost of goods manufactured 4.the ending raw materials balance 5.Direct materials used 6.cash paid for raw materials 7.The under or over applied overhead for the year
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