Essay
The Lakeview Corporation had the following account balances:
| Raw Material | Manufacturing Overhead | ? | 385,000 | ? | ||||
| Bal. 1/1 | 30,000 | |||||||
| 420,000 | ||||||||
| Bal. 12/31 | 60,000 |
| Work in Process | Factory Wages Payable | |||||||
| Bal. 1/1 Direct material | 70,000 320,000 | 810,000 | 179,000 | Bal.1/1 | 10,000 175,000 | |||
| Direct labor | 11,000 | |||||||
| Overhead | 400,000 | Bal. 12/31 | 6,000 | |||||
| Bal. 12/31 | ? | |||||||
| Finished Goods | Cost of Goods Sold | ? | ? | |||||
| Bal. 1/1 | 40,000 | |||||||
| ? | ||||||||
| Bal. 12/31 | 130,000 | |||||||
Required:
a.What was the cost of raw material put into production during the year?
b.How much of the material from question 1 consisted of indirect material?
c.How much of the factory labor cost for the year consisted of indirect labor?
d.What was the cost of goods manufactured for the year?
e.What was the cost of goods sold for the year (before considering under- or overapplied overhead)?
f.If overhead is applied to production on the basis of direct material, what rate was in effect during the year?
g.Was manufacturing overhead under- or overapplied? By how much?
h.Compute the ending balance in the Work in Process Inventory account. Assume that this balance consists entirely of goods started during the year. If $32,000 of this balance is direct material cost, how much of it is direct labor cost? Manufacturing overhead cost?
Correct Answer:
Verified
Correct Answer:
Verified
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