Compute the amount for each of the following. Direct materials used Indirect materials used Direct labor used Indirect labor used Cost of goods manufactured Cost of goods sold (before closing over- or underapplied overhead) Compute the amount that overhead is overapplied or underapplied.
Compute the amount for each of the following. Direct materials used Indirect materials used Direct labor used Indirect labor used Cost of goods manufactured Cost of goods sold (before closing over- or underapplied overhead) Compute the amount that overhead is overapplied or underapplied.
Compute the amount for each of the following. Direct materials used Indirect materials used Direct labor used Indirect labor used Cost of goods manufactured Cost of goods sold (before closing over- or underapplied overhead) Compute the amount that overhead is overapplied or underapplied.
Cost of goods sold (before closing over- or underapplied overhead)
Compute the amount that overhead is overapplied or underapplied.
Transcribed Image Text:Raw Materials Inventory
Debit
Credit
45,000
24,250
8,000
Work in Process Inventory
Debit
Credit
24,250
85,750
102,684
170,320
Factory Wages Payable
Debit
Credit
126,000
1. Compute the amount for each of the following.
a. Direct materials used
b. Indirect materials used
c. Direct labor used
d. Indirect labor used
85,750
40,250
Finished Goods Inventory
Debit
Credit
170, 320 153,290
e. Cost of goods manufactured
f. Cost of goods sold (before closing over- or underapplied overhead)
2. Compute the amount that overhead is overapplied or underapplied.
Factory Overhead
Debit
Credit
8,000 102,684
40,250
61,370
Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.
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