Materials Inventory Debit Ending Balance 38,200 Credit Work-in-Process Inventory Debit Beginning Credit Finished Goods Inventory Balance 22,100 Debit Credit (9/30) (9/1) Direct Labor Ending Balance 67,700 118,000 (9/30) Cost of Goods Sold Manufacturing Overhead Applied Debit Credit Debit Credit Manufacturing Overhead Control Debit Credit 129,570 Wages Payable Sales Revenue Debit Credit Debit Credit 479,500 Additional Data Sales are billed at 175 percent of Cost of Goods Sold before the over- or underapplied overhead is prorated. • Materials of $76,500 were purchased during the month, and the balance in the Materials Inventory account increased by $5,700 • Overhead is applied at the rate of 210 percent of direct materials cost. The balance in the Finished Goods Inventory account decreased by $19,700 during the month before any proration of under- or overapplied overhead. • Total credits to the Wages Payable account amounted to $135,300 for direct and indirect labor. . Factory depreciation totaled $32,700. • . Overhead was overapplied by $17,200. Overhead other than indirect labor, indirect materials, and depreciation incurred was $54,850, 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 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.
Materials Inventory Debit Ending Balance 38,200 Credit Work-in-Process Inventory Debit Beginning Credit Finished Goods Inventory Balance 22,100 Debit Credit (9/30) (9/1) Direct Labor Ending Balance 67,700 118,000 (9/30) Cost of Goods Sold Manufacturing Overhead Applied Debit Credit Debit Credit Manufacturing Overhead Control Debit Credit 129,570 Wages Payable Sales Revenue Debit Credit Debit Credit 479,500 Additional Data Sales are billed at 175 percent of Cost of Goods Sold before the over- or underapplied overhead is prorated. • Materials of $76,500 were purchased during the month, and the balance in the Materials Inventory account increased by $5,700 • Overhead is applied at the rate of 210 percent of direct materials cost. The balance in the Finished Goods Inventory account decreased by $19,700 during the month before any proration of under- or overapplied overhead. • Total credits to the Wages Payable account amounted to $135,300 for direct and indirect labor. . Factory depreciation totaled $32,700. • . Overhead was overapplied by $17,200. Overhead other than indirect labor, indirect materials, and depreciation incurred was $54,850, 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 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Materials Inventory
Debit
Ending
Balance
38,200
Credit
Work-in-Process Inventory
Debit
Beginning
Credit
Finished Goods Inventory
Balance
22,100
Debit
Credit
(9/30)
(9/1)
Direct
Labor
Ending
Balance
67,700
118,000
(9/30)
Cost of Goods Sold
Manufacturing Overhead Applied
Debit
Credit
Debit
Credit
Manufacturing Overhead Control
Debit
Credit
129,570
Wages Payable
Sales Revenue
Debit
Credit
Debit
Credit
479,500
Additional Data
Sales are billed at 175 percent of Cost of Goods Sold before the over- or underapplied overhead is prorated.
• Materials of $76,500 were purchased during the month, and the balance in the Materials Inventory account increased by $5,700
• Overhead is applied at the rate of 210 percent of direct materials cost.
The balance in the Finished Goods Inventory account decreased by $19,700 during the month before any proration of under- or
overapplied overhead.
• Total credits to the Wages Payable account amounted to $135,300 for direct and indirect labor.
.
Factory depreciation totaled $32,700.
•
.
Overhead was overapplied by $17,200. Overhead other than indirect labor, indirect materials, and depreciation incurred was
$54,850, 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 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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