The following Information Is avallable 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. Beginning of period Inventories End of Period $ 45,000 Raw materials Work in process Finished goods $ 45, 000 9,800 18,400 61, 000 34,e00 Cost incurred for the period Raw materials purchases $ 191,eee Factory payroll Factory overhead (actual) Indirect materials used 250,ee0 15,e00 57, 500 98,5e0 Indirect labor used Other overhead costs Exercise 2-12 (Algo) Computing materials, labor, overhead, and cost of goods manufactured LO P1, P2, Р3, Р4 1. In the Raw Materlals Inventory T-account, Insert amounts for beginning and ending balances along with purchases and Indirect materials used. Solve for direct materlals used In the perlod. 2. Compute the cost of direct labor used for the perlod. 3. In the Work In Process Inventory T-account, Insert amounts for beginning and ending balances along with direct materlals 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 cost of goods sold In the perlod (do not consider any under- or overappled overhead). 5. In the Factory Overhead T-account, Insert amounts for Indırect materials used, Indirect labor used, other overhead costs, and
The following Information Is avallable 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. Beginning of period Inventories End of Period $ 45,000 Raw materials Work in process Finished goods $ 45, 000 9,800 18,400 61, 000 34,e00 Cost incurred for the period Raw materials purchases $ 191,eee Factory payroll Factory overhead (actual) Indirect materials used 250,ee0 15,e00 57, 500 98,5e0 Indirect labor used Other overhead costs Exercise 2-12 (Algo) Computing materials, labor, overhead, and cost of goods manufactured LO P1, P2, Р3, Р4 1. In the Raw Materlals Inventory T-account, Insert amounts for beginning and ending balances along with purchases and Indirect materials used. Solve for direct materlals used In the perlod. 2. Compute the cost of direct labor used for the perlod. 3. In the Work In Process Inventory T-account, Insert amounts for beginning and ending balances along with direct materlals 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 cost of goods sold In the perlod (do not consider any under- or overappled overhead). 5. In the Factory Overhead T-account, Insert amounts for Indırect materials used, Indirect labor used, other overhead costs, and
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:Required 1 3 4
and 5
Required 2
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 per
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 applie
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 cost of goods sold in the p
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 ov
Raw Materials Inventory
Work in Process Inventory
Beginning
Beginning
Beginning
Beginning
Ending
Ending
Ending
Ending
Finished Goods Inventory
Factory Overhead
Beginning
Beginning
Beginning
Beginning
15,000
57,500
Ending
Ending
90,500
183,000
Transcribed Image Text:The following Information Is avallable 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.
Beginning of
period
Inventories
End of Period
$ 45,e00
18,400
34, e00
Raw materials
$ 45, 000
Work in process
Finished goods
9,800
61, e00
Cost incurred for the period
Raw materials purchases
$ 191,000
Factory payroll
Factory overhead (actual)
250, eee
Indirect materials used
15,eee
57,500
90,500
Indirect labor used
Other overhead costs
Exercise 2-12 (Algo) Computing materials, labor, overhead, and cost of goods manufactured LO P1, P2,
Р3, Р4
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 perlod.
2. Compute the cost of direct labor used for the perlod.
3. In the Work In Process Inventory T-account, Insert amounts for beginning and ending balances along with direct materlals 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 beglnning and ending balances along with cost of goods
manufactured (from part 3). Solve for 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 materlals used, Indirect labor used, other overhead costs, and
applied overhead. Solve for underapplied or overapplied overhead.
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!
Trending now
This is a popular solution!
Step by step
Solved in 2 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