Granger Products recorded the following transactions for the just-completed month. The company had no beginning inventories: a. $75,000 In raw materials was purchased for cash.b. $73,000 in raw materials was requisitioned for use in production. Of this amount, $67,000 was for direct materials and the remainder was for Indirect materials.c. Total wages of $152,000 were incurred and paid. Of this amount, $134,000 was for direct labor and the remainder was for indirect labor.d. Additional manufacturing overhead costs of $126,000 were incurred and paid.e. Manufacturing overhead costs of $178,000 were applied to jobs using the company's predetermined overhead rate.f. All of the jobs in process at the end of the month were completed and shipped to customers.g. If overhead is underapplied in the period, it is closed out to the cost of goods sold. If overhead is overapplied in the period, It is based on the basis of the amount of allocated overhead that is in the ending balances in each account. Post the above transactions to T-accounts and determine the cost of goods sold for the period.
Granger Products recorded the following transactions for the just-completed month. The company had no beginning inventories:
a. $75,000 In raw materials was purchased for cash.
b. $73,000 in raw materials was requisitioned for use in production. Of this amount, $67,000 was for direct materials and the remainder was for Indirect materials.
c. Total wages of $152,000 were incurred and paid. Of this amount, $134,000 was for direct labor and the remainder was for indirect labor.
d. Additional
e. Manufacturing overhead costs of $178,000 were applied to jobs using the company's predetermined overhead rate.
f. All of the jobs in process at the end of the month were completed and shipped to customers.
g. If overhead is underapplied in the period, it is closed out to the cost of goods sold. If overhead is overapplied in the period, It is based on the basis of the amount of allocated overhead that is in the ending balances in each account.
Step by step
Solved in 2 steps
