1.
The cost of indirect material, labor and other expenses is the overhead cost. This cost is not direct as it is not relate to the cost of production directly. The example of overhead cost is administration cost, selling and distribution cost and other.
To prepare: The journal entries for December 31 payroll.
2.
a
To compute: The amount of material requisitioned into work in progress (WIP) account.
Given information:
Opening balance of WIP is $6,700.
Closing balance of WIP is $9,000.
Direct manufacturing labor is $4,300.
b.
To compute: The total amount of direct manufacturing labor recorded in work in progress account.
Given information:
Cost of goods manufactured is $234,000.
The amount of material requisitioned is $11,330.
Overhead cost is 110% of direct
c.
To compute: The total amount of manufacturing overhead recorded in work in progress.
Given information:
Direct manufacturing labor is $88,300.
Overhead cost is 110% of direct manufacturing labor.
d.
To compute: The ending balance of work in process account.
e.
To compute: The cost of goods sold before adjustment of under or over allocated manufacturing overhead.
3.
To prepare: The closing
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Chapter 4 Solutions
Cost Accounting
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