Telstar uses job order costing. The T-accounts below summarize its production activity for the year. Raw Materials Inventory Factory Wages Payable Debit Credit 45,500 126,500 24,750 8,500 Work in Process Inventory Debit Credit 24,750 170,820 86,250 103, 184 Debit Required 1 Compute the amount for each of the following. a. Direct materials used b. Indirect materials used Required 2 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 e. Cost of goods manufactured 1. Cost of goods sold (before closing over- or underapplied overhead) 2. Compute the amount that overhead is overapplied or underapplied. Credit Finished Goods Inventory. Debit Credit 170,820 153,790 Complete this question by entering your answers in the tabs below. 86,250 40,750 c. Direct labor used d. Indirect labor used e. Cost of goods manufactured f. Cost of goods sold (before closing over- or underapplied overhead) Compute the amount that overhead is overapplied or underapplied. Underapplied overhead Debit Factory Overhead 8,500 40,750 61,870 Credit 103,184
Telstar uses job order costing. The T-accounts below summarize its production activity for the year. Raw Materials Inventory Factory Wages Payable Debit Credit 45,500 126,500 24,750 8,500 Work in Process Inventory Debit Credit 24,750 170,820 86,250 103, 184 Debit Required 1 Compute the amount for each of the following. a. Direct materials used b. Indirect materials used Required 2 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 e. Cost of goods manufactured 1. Cost of goods sold (before closing over- or underapplied overhead) 2. Compute the amount that overhead is overapplied or underapplied. Credit Finished Goods Inventory. Debit Credit 170,820 153,790 Complete this question by entering your answers in the tabs below. 86,250 40,750 c. Direct labor used d. Indirect labor used e. Cost of goods manufactured f. Cost of goods sold (before closing over- or underapplied overhead) Compute the amount that overhead is overapplied or underapplied. Underapplied overhead Debit Factory Overhead 8,500 40,750 61,870 Credit 103,184
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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.
Topic Video
Question
Transcribed Image Text:Telstar uses job order costing. The T-accounts below summarize its production activity for the year.
Raw Materials Inventory
Debit
Credit
45,500
Work in Process Inventory
Debit
Credit
24,750
8,500
24,750 170,820
86,250
103,184
b. Indirect materials used
c. Direct labor used
Required 1
1. Compute the amount for each of the following.
a. Direct materials used
Required 2
Factory Wages Payable
Debit
Compute the amount for each of the following.
a. Direct materials used
b. Indirect materials used
c. Direct labor used
126,500
Finished Goods Inventory
Debit
Credit
170,820
d. Indirect labor used
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.
Credit
Complete this question by entering your answers in the tabs below.
86,250
40,750
d. Indirect labor used
e. Cost of goods manufactured
f. Cost of goods sold (before closing over- or underapplied overhead)
Compute the amount that overhead is overapplied or underapplied.
Underapplied overhead
153,790
Debit
Factory Overhead
8,500
40,750
61,870
Credit
103,184
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Step 1: Basic Introduction
VIEWStep 2: Part 1a and 1b :- Working for direct materials used and indirect materials used
VIEWStep 3: Part 1c and 1d Working for direct labor used and indirect labor used
VIEWStep 4: Part 1e and 1f:- Working for cost of goods manufactured and cost of goods sold
VIEWStep 5: Part 2 :- Working for under or over applied overhead
VIEWSolution
VIEW
Trending now
This is a popular solution!
Step by step
Solved in 6 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education