The following T-accounts represent November activity. Materials Inventory Work-In-Process Inventory 33,200 EB (11/30) 57,000 Finished Goods Inventory Cost of Goods Sold EB (11/30) 98,000 Manufacturing Overhead Control Applied Manufacturing Overhead 265,500 Wages Payable Sales Revenue 644,800 Additional Data • Materials of $115,100 were purchased during the month, and the balance in the Materials Inventory account increased by $10,900. • Overhead is applied at the rate of 150 percent of direct labor cost. Sales are billed at 160 percent of cost of goods sold before the over- or underapplied overhead is prorated. • The balance in the Finished Goods Inventory account decreased by $28,000 during the month before any proration of under-or overapplied overhead. • Total credits to the Wages Payable account amounted to $201,000 for direct and indirect labor. • Factory depreciation totaled $46,730. • Overhead was underapplied by $25,480. Overhead other than indirect labor, indirect materials, and depreciation was $203,150, which required payment in cash. Underapplied overhead is to be allocated. The company has decided to allocate 25 percent of underapplied overhead to Work-in-Process Inventory, 15 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. BB (11/1) Dir.Materials 87,100
The following T-accounts represent November activity. Materials Inventory Work-In-Process Inventory 33,200 EB (11/30) 57,000 Finished Goods Inventory Cost of Goods Sold EB (11/30) 98,000 Manufacturing Overhead Control Applied Manufacturing Overhead 265,500 Wages Payable Sales Revenue 644,800 Additional Data • Materials of $115,100 were purchased during the month, and the balance in the Materials Inventory account increased by $10,900. • Overhead is applied at the rate of 150 percent of direct labor cost. Sales are billed at 160 percent of cost of goods sold before the over- or underapplied overhead is prorated. • The balance in the Finished Goods Inventory account decreased by $28,000 during the month before any proration of under-or overapplied overhead. • Total credits to the Wages Payable account amounted to $201,000 for direct and indirect labor. • Factory depreciation totaled $46,730. • Overhead was underapplied by $25,480. Overhead other than indirect labor, indirect materials, and depreciation was $203,150, which required payment in cash. Underapplied overhead is to be allocated. The company has decided to allocate 25 percent of underapplied overhead to Work-in-Process Inventory, 15 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. BB (11/1) Dir.Materials 87,100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Beg. Bal. (11/1)
Purchases
End. Bal. (11/30)
Beg. Bal. (11/1)
Bal.
End. Bal. (11/30)
Beg. Bal. (11/1)
Indirect materials
End. Bal. (11/30)
Materials Inventory
57,000
Finished Goods Inventory
98,000
98,000
Manufacturing Overhead Control
Direct materials
Indirect materials
Beg. Bal. (11/1)
Direct materials
Direct labor
Overhead applied
Bal.
End. Bal. (11/30)
Beg. Bal. (11/1)
End. Bal. (11/30)
Beg. Bal. (11/1)
End. Bal. (11/30)
Work-in-Process Inventory
33,200
87,100
120,300
120,300
Cost of Goods Sold
Applied Manufacturing Overhead
265,500
265,500
Transcribed Image Text:The following T-accounts represent November activity.
Materials Inventory
Work-In-Process Inventory
33,200
EB (11/30) 57,000
Finished Goods Inventory
Cost of Goods Sold
EB (11/30) 98,000
Manufacturing Overhead Control
Applied Manufacturing Overhead
265,500
Wages Payable
Sales Revenue
644,800
Additional Data
Materials of $115,100 were purchased during the month, and the balance in the Materials Inventory account increased by
$10,900.
• Overhead is applied at the rate of 150 percent of direct labor cost.
Sales are billed at 160 percent of cost of goods sold before the over- or underapplied overhead is prorated.
• The balance in the Finished Goods Inventory account decreased by $28,000 during the month before any proration of under-or
overapplied overhead.
• Total credits to the Wages Payable account amounted to $201,000 for direct and indirect labor.
Factory depreciation totaled $46,730.
• Overhead was underapplied by $25,480. Overhead other than indirect labor, indirect materials, and depreciation was $203,150,
which required payment in cash. Underapplied overhead is to be allocated.
• The company has decided to allocate 25 percent of underapplied overhead to Work-in-Process Inventory, 15 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.
BB (11/1)
Dir.Materials 87,100
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 with 1 images
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