Required information [The following information applies to the questions displayed below.] The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost. Inventories Raw materials Work in process Finished goods Beginning of period $ 26,000 9,700 69,000 Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Indirect materials used Indirect labor used Other overhead costs End of Period $ 58,000 19,600 34,300 $ 171,000 250,000 7,000 57,500 100,000 1. In the Raw Materials Inventory T-account, insert amounts for beginning and ending balances along with purchases and indirect materials used. Solve for direct materials used in the period. 2. Compute the cost of direct labor used for the period. 3. In the Work in Process Inventory T-account, insert amounts for beginning and ending balances along with direct materials used (from part 1), direct labor used (from part 2), and applied overhead. Solve for cost of goods manufactured in the period.
Required information [The following information applies to the questions displayed below.] The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost. Inventories Raw materials Work in process Finished goods Beginning of period $ 26,000 9,700 69,000 Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Indirect materials used Indirect labor used Other overhead costs End of Period $ 58,000 19,600 34,300 $ 171,000 250,000 7,000 57,500 100,000 1. In the Raw Materials Inventory T-account, insert amounts for beginning and ending balances along with purchases and indirect materials used. Solve for direct materials used in the period. 2. Compute the cost of direct labor used for the period. 3. In the Work in Process Inventory T-account, insert amounts for beginning and ending balances along with direct materials used (from part 1), direct labor used (from part 2), and applied overhead. Solve for cost of goods manufactured in the period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Question
Please see images below for directions.
Transcribed Image Text:### Accounting Inventory and Overhead Analysis
**Instructions:**
1. In the Raw Materials Inventory T-account, insert amounts for beginning and ending balances along with purchases and indirect materials used. Solve for direct materials used in the period.
2. In the Work in Process Inventory T-account, insert amounts for beginning and ending balances along with direct materials used (from part 1), direct labor used (from part 2), and applied overhead costs incurred in the period.
3. In the Finished Goods Inventory T-account, insert amounts for beginning and ending balances along with cost of goods manufactured (from part 3). Solve for cost of goods sold in the period (do not include over- or under-applied overhead).
4. In the Factory Overhead T-account, insert amounts for indirect materials used, indirect labor used, other overhead costs, and applied overhead. Solve for underapplied or overapplied overhead.
**T-Account Details:**
**Raw Materials Inventory**
| Description | Amount | Description | Amount |
|:-----------:|:------:|:-----------:|:------:|
| Beginning | | Beginning | |
| | | | |
| | | | |
| | | | |
| | | | |
| Ending | | Ending | 0 |
**Work in Process Inventory**
| Description | Amount | Description | Amount |
|:-----------:|:------:|:-----------:|:------:|
| Beginning | | Beginning | |
| | | | |
| | | | |
| | | | |
| | | | |
| Ending | | Ending | 0 |
**Finished Goods Inventory**
| Description | Amount | Description | Amount |
|:-----------:|:------:|:-----------:|:------:|
| Beginning | | Beginning | |
| | | | |
| | | | |
| | | | |
| | | | |
| Ending | | Ending | 0 |
**Factory Overhead**
| Description | Amount | Description | Amount |
|:------------------------:|:------:|:-----------:|:------:|
| Beginning
![**Required Information**
*[The following information applies to the questions displayed below.]*
The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost.
| Inventories | Beginning of Period | End of Period |
|------------------------|---------------------|---------------|
| Raw materials | $26,000 | $58,000 |
| Work in process | $9,700 | $19,600 |
| Finished goods | $69,000 | $34,300 |
**Cost incurred for the period**
| | Amount |
|-------------------------|----------|
| Raw materials purchases | $171,000 |
| Factory payroll | $250,000 |
| Factory overhead (actual)| |
| Indirect materials used | $7,000 |
| Indirect labor used | $57,500 |
| Other overhead costs | $100,000 |
### Instructions:
1. **In the Raw Materials Inventory T-account**, insert amounts for beginning and ending balances along with purchases and indirect materials used. Solve for direct materials used in the period.
2. **Compute the cost of direct labor used for the period.**
3. **In the Work in Process Inventory T-account**, insert amounts for beginning and ending balances along with direct materials used (from part 1), direct labor used (from part 2), and applied overhead. Solve for cost of goods manufactured in the period.
4. **In the Finished Goods Inventory T-account**, insert amounts for beginning and ending balances along with cost of goods manufactured (from part 3). Solve for the cost of goods sold in the period (do not consider any under- or overapplied overhead).
5. **In the Factory Overhead T-account**, insert amounts for indirect materials used, indirect labor used, other overhead costs, and applied overhead. Solve for underapplied or overapplied overhead.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6f96dd47-ce3e-4fb6-9f29-e38e62f29b56%2F4e63324f-686a-486d-8fca-538ca5eeb0b3%2Fbcs6cyd_processed.png&w=3840&q=75)
Transcribed Image Text:**Required Information**
*[The following information applies to the questions displayed below.]*
The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost.
| Inventories | Beginning of Period | End of Period |
|------------------------|---------------------|---------------|
| Raw materials | $26,000 | $58,000 |
| Work in process | $9,700 | $19,600 |
| Finished goods | $69,000 | $34,300 |
**Cost incurred for the period**
| | Amount |
|-------------------------|----------|
| Raw materials purchases | $171,000 |
| Factory payroll | $250,000 |
| Factory overhead (actual)| |
| Indirect materials used | $7,000 |
| Indirect labor used | $57,500 |
| Other overhead costs | $100,000 |
### Instructions:
1. **In the Raw Materials Inventory T-account**, insert amounts for beginning and ending balances along with purchases and indirect materials used. Solve for direct materials used in the period.
2. **Compute the cost of direct labor used for the period.**
3. **In the Work in Process Inventory T-account**, insert amounts for beginning and ending balances along with direct materials used (from part 1), direct labor used (from part 2), and applied overhead. Solve for cost of goods manufactured in the period.
4. **In the Finished Goods Inventory T-account**, insert amounts for beginning and ending balances along with cost of goods manufactured (from part 3). Solve for the cost of goods sold in the period (do not consider any under- or overapplied overhead).
5. **In the Factory Overhead T-account**, insert amounts for indirect materials used, indirect labor used, other overhead costs, and applied overhead. Solve for underapplied or overapplied overhead.
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