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The following T-accounts represent September activity for Kelly Tools: Work-in-Process Inventory Materials Inventory Debit Credit Debit Credit Beginning Ending Balance 24,900 Balance 42,400 (9/1) (9/30) Direct 120,800 Labor Cost of Goods Sold Debit Credit Manufacturing Overhead Applied Credit Debit Finished Goods Inventory Debit Credit Ending Balance 70,500 (9/30) Manufacturing Overhead Control Credit Debit 132,510 Wages Payable Sales Revenue Debit Credit Debit Credit 528,500 . Additional Data •Sales are billed at 175 percent of Cost of Goods Sold before the over- or underapplied overhead is prorated. Materials of $82,100 were purchased during the month, and the balance in the Materials Inventory account increased by $8,500 • Overhead is applied at the rate of 210 percent of direct materials cost. The balance in the Finished Goods Inventory account decreased by $23,900 during the month before any proration of under- or overapplied overhead. • Total credits to the Wages Payable account amounted to $139,500 for direct and indirect labor. Factory depreciation totaled $36,900. Overhead was overapplied by $20,000. Overhead other than indirect labor, Indirect materials, and depreciation incurred was $59,050, which required payment in cash. Overapplied overhead is to be allocated. The company has decided to allocate 12 percent of overapplied overhead to Work-in-Process Inventory, 23 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.

The following T-accounts represent September activity for Kelly Tools: Work-in-Process Inventory Materials Inventory Debit Credit Debit Credit Beginning Ending Balance 24,900 Balance 42,400 (9/1) (9/30) Direct 120,800 Labor Cost of Goods Sold Debit Credit Manufacturing Overhead Applied Credit Debit Finished Goods Inventory Debit Credit Ending Balance 70,500 (9/30) Manufacturing Overhead Control Credit Debit 132,510 Wages Payable Sales Revenue Debit Credit Debit Credit 528,500 . Additional Data •Sales are billed at 175 percent of Cost of Goods Sold before the over- or underapplied overhead is prorated. Materials of $82,100 were purchased during the month, and the balance in the Materials Inventory account increased by $8,500 • Overhead is applied at the rate of 210 percent of direct materials cost. The balance in the Finished Goods Inventory account decreased by $23,900 during the month before any proration of under- or overapplied overhead. • Total credits to the Wages Payable account amounted to $139,500 for direct and indirect labor. Factory depreciation totaled $36,900. Overhead was overapplied by $20,000. Overhead other than indirect labor, Indirect materials, and depreciation incurred was $59,050, which required payment in cash. Overapplied overhead is to be allocated. The company has decided to allocate 12 percent of overapplied overhead to Work-in-Process Inventory, 23 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following T-accounts represent September activity for Kelly Tools: Work-in-Process Inventory Materials Inventory Debit Credit Debit Credit Beginning Ending Balance 24,900 Balance 42,400 (9/1) (9/30) Direct 120,800 Labor Cost of Goods Sold Debit Credit Manufacturing Overhead Applied Credit Debit Finished Goods Inventory Debit Credit Ending Balance 70,500 (9/30) Manufacturing Overhead Control Credit Debit 132,510 Wages Payable Sales Revenue Debit Credit Debit Credit 528,500 . Additional Data •Sales are billed at 175 percent of Cost of Goods Sold before the over- or underapplied overhead is prorated. Materials of $82,100 were purchased during the month, and the balance in the Materials Inventory account increased by $8,500 • Overhead is applied at the rate of 210 percent of direct materials cost. The balance in the Finished Goods Inventory account decreased by $23,900 during the month before any proration of under- or overapplied overhead. • Total credits to the Wages Payable account amounted to $139,500 for direct and indirect labor. Factory depreciation totaled $36,900. Overhead was overapplied by $20,000. Overhead other than indirect labor, Indirect materials, and depreciation incurred was $59,050, which required payment in cash. Overapplied overhead is to be allocated. The company has decided to allocate 12 percent of overapplied overhead to Work-in-Process Inventory, 23 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.
Transcribed Image Text:The following T-accounts represent September activity for Kelly Tools: Work-in-Process Inventory Materials Inventory Debit Credit Debit Credit Beginning Ending Balance 24,900 Balance 42,400 (9/1) (9/30) Direct 120,800 Labor Cost of Goods Sold Debit Credit Manufacturing Overhead Applied Credit Debit Finished Goods Inventory Debit Credit Ending Balance 70,500 (9/30) Manufacturing Overhead Control Credit Debit 132,510 Wages Payable Sales Revenue Debit Credit Debit Credit 528,500 . Additional Data •Sales are billed at 175 percent of Cost of Goods Sold before the over- or underapplied overhead is prorated. Materials of $82,100 were purchased during the month, and the balance in the Materials Inventory account increased by $8,500 • Overhead is applied at the rate of 210 percent of direct materials cost. The balance in the Finished Goods Inventory account decreased by $23,900 during the month before any proration of under- or overapplied overhead. • Total credits to the Wages Payable account amounted to $139,500 for direct and indirect labor. Factory depreciation totaled $36,900. Overhead was overapplied by $20,000. Overhead other than indirect labor, Indirect materials, and depreciation incurred was $59,050, which required payment in cash. Overapplied overhead is to be allocated. The company has decided to allocate 12 percent of overapplied overhead to Work-in-Process Inventory, 23 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.
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