Assigning Costs: Missing Data
The following T accounts represent November activity.
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Materials Inventory |
Work In Process Inventory |
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EB (11/30) 56,400 |
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BB (11/1) 32,600 |
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Dir. Materials 86,200 |
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Finished Goods Inventory |
Cost of Goods Sold |
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EB (11/30) 101,000 |
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Manufacturing Overhead Control |
Applied Manufacturing Overhead |
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Actual |
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264,000 |
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Wages Payable |
Sales Revenue |
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725,400 |
Additional Data
• Materials of $113,600 were purchased during the month, and the balance in the Materials Inventory account increased by $11,000.
• Overhead is applied at the rate of 150 percent of direct labor cost.
• Sales are billed at 180 percent of cost of goods sold before the over or underapplied overhead is prorated.
• The balance in the Finished Goods Inventory account decreased by $28,600 during the month before any proration of under or overapplied overhead.
• Total credits to the Wages Payable account amounted to $202,000 for direct and indirect labor.
• Factory depreciation totaled $48,200.
• Overhead was underapplied by $25,080. Overhead other than indirect labor, indirect materials, and depreciation was $198,480, 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.