The following T-accounts provide selected data about Cullumber’s financial results for the year. Sadly, several key components went missing after a thief broke into the Cullumber accounting office: RM Inventory Beg. Bal. 23,100 ? 75,300 ? End. Bal. 18,300 WIP Inventory Beg. Bal. 52,800 282,300 DM 72,300 DL 90,300 Applied MOH 113,100 End. Bal. ? FG Inventory Beg. Bal. 90,300 ? ? End. Bal. 72,400 MOH Control (Total debits during the year) 111,300 ? What is the amount of indirect material cost incurred this period? Indirect material cost $7800 Specify whether MOH for the period was under- or overapplied, and by how much. MOH for the period was OVERAPPLIED by $1800 Determine the COGS amount for this period (before any MOH difference would have been closed out). COGS $300,200 Prepare the journal entry to close out the MOH difference, given that the company wants to prorate it to the appropriate accounts based on their ending balances (before proration) (round proportions to four decimal places, if necessary). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round proportions to four decimal places, e.g. 0.5250 and final answers to 2 decimal places, e.g. 5,275.25.) Account Titles and Explanation Debit Credit MOH 1800 WIP Inventory FG Inventory Cost of Goods Sold

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter7: Accounting Information Systems

Section: Chapter Questions

Problem 10MC: The company just took a physical count of inventory and found $75 worth of inventory was unaccounted...

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The following T-accounts provide selected data about Cullumber’s financial results for the year. Sadly, several key components went missing after a thief broke into the Cullumber accounting office:

RM Inventory
Beg. Bal.	23,100	?
	75,300	?
End. Bal.	18,300

WIP Inventory
Beg. Bal.	52,800	282,300
DM	72,300
DL	90,300
Applied MOH	113,100
End. Bal.	?

FG Inventory
Beg. Bal.	90,300	?
	?
End. Bal.	72,400

MOH Control
(Total debits during the year)	111,300		?

What is the amount of indirect material cost incurred this period?

Indirect material cost

$7800

Specify whether MOH for the period was under- or overapplied, and by how much.

MOH for the period was OVERAPPLIED by $1800

Determine the COGS amount for this period (before any MOH difference would have been closed out).

COGS

$300,200

Prepare the journal entry to close out the MOH difference, given that the company wants to prorate it to the appropriate accounts based on their ending balances (before proration) (round proportions to four decimal places, if necessary). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round proportions to four decimal places, e.g. 0.5250 and final answers to 2 decimal places, e.g. 5,275.25.)

Account Titles and Explanation	Debit	Credit
MOH	1800
WIP Inventory
FG Inventory
Cost of Goods Sold

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