XYZ Corporation started three years ago. Operations were smooth until December 20 of this year, when their cost accountant, named Cutie Pie, went AWOL (absence without leave). The management was worried because all of the data in his possession was also lost. Then they decided to hire you to help them solve their problem. They were able to trace transactions and summarized them to the following but with some missing amounts: Raw Material Manufacturing Overhead Credits Debits 385,000 | Credits Bal. 1/1 Debits 30,000 420,000 ? Bal. 12/31 60,000 Work in Process 70,000 320,000 110,000 Factory Wages Payable Bal. 1/1 Direct material Direct labor 10,000 175,000 Credits 810,000 Debits 179,000 Bal. 1/1 Credits Overhead Bal. 12/31 6,000 Bal. 12/31 Finished Goods Cost of Goods Sold Bal. 1/1 40,000 Credits ? Debits ? Debits ? Bal. 12/31 130,000 REQUIRED: 1. How much of the factory labor cost for the year consisted of indirect labor? 2. What is the ending balance of Work-in-Process? 3. What was the cost of goods sold for the year?
XYZ Corporation started three years ago. Operations were smooth until December 20 of this year, when their cost accountant, named Cutie Pie, went AWOL (absence without leave). The management was worried because all of the data in his possession was also lost. Then they decided to hire you to help them solve their problem. They were able to trace transactions and summarized them to the following but with some missing amounts: Raw Material Manufacturing Overhead Credits Debits 385,000 | Credits Bal. 1/1 Debits 30,000 420,000 ? Bal. 12/31 60,000 Work in Process 70,000 320,000 110,000 Factory Wages Payable Bal. 1/1 Direct material Direct labor 10,000 175,000 Credits 810,000 Debits 179,000 Bal. 1/1 Credits Overhead Bal. 12/31 6,000 Bal. 12/31 Finished Goods Cost of Goods Sold Bal. 1/1 40,000 Credits ? Debits ? Debits ? Bal. 12/31 130,000 REQUIRED: 1. How much of the factory labor cost for the year consisted of indirect labor? 2. What is the ending balance of Work-in-Process? 3. What was the cost of goods sold for the year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![XYZ Corporation started three years ago. Operations were smooth until December 20 of this year, when
their cost accountant, named Cutie Pie, went AWOL (absence without leave). The management was
worried because all of the data in his possession was also lost. Then they decided to hire you to help
them solve their problem. They were able to trace transactions and summarized them to the following
but with some missing amounts:
Raw Material
Manufacturing Overhead
Bal. 1/1
30,000
Credits
?
Debits
385,000 | Credits
Debits
420,000
Bal. 12/31
60,000
Work in Process
Factory Wages Payable
Bal. 1/1
70,000
Credits
810,000
Debits
179,000
Bal. 1/1
10,000
Direct material
Direct labor
320,000
110,000
Credits
175,000
Overhead
Bal. 12/31
6,000
Bal. 12/31
?
Finished Goods
Cost of Goods Sold
Bal. 1/1
40,000
Credits
?
Debits
Debits
Bal. 12/31
130,000
REQUIRED:
1. How much of the factory labor cost for the year consisted of indirect labor?
2. What is the ending balance of Work-in-Process?
3. What was the cost of goods sold for the year?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F914ce83a-466b-4321-8305-78951a83cf46%2F48f2798f-7bff-4aa5-924f-72e4874e372a%2Fwmmcrgn_processed.png&w=3840&q=75)
Transcribed Image Text:XYZ Corporation started three years ago. Operations were smooth until December 20 of this year, when
their cost accountant, named Cutie Pie, went AWOL (absence without leave). The management was
worried because all of the data in his possession was also lost. Then they decided to hire you to help
them solve their problem. They were able to trace transactions and summarized them to the following
but with some missing amounts:
Raw Material
Manufacturing Overhead
Bal. 1/1
30,000
Credits
?
Debits
385,000 | Credits
Debits
420,000
Bal. 12/31
60,000
Work in Process
Factory Wages Payable
Bal. 1/1
70,000
Credits
810,000
Debits
179,000
Bal. 1/1
10,000
Direct material
Direct labor
320,000
110,000
Credits
175,000
Overhead
Bal. 12/31
6,000
Bal. 12/31
?
Finished Goods
Cost of Goods Sold
Bal. 1/1
40,000
Credits
?
Debits
Debits
Bal. 12/31
130,000
REQUIRED:
1. How much of the factory labor cost for the year consisted of indirect labor?
2. What is the ending balance of Work-in-Process?
3. What was the cost of goods sold for the year?
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