Question

problem 3-11 (algo) t-account analysis of cost flows lo3-2, lo3-3, lo3-4

selected t-accounts of moore company are given below for the just completed year:

raw materials
debit | credit
balance 1/1: 25,000 | credits: ?
debits: 140,000 |
balance 12/31: 35,000 |

manufacturing overhead
debit | credit
debits: 203,200 | credits: ?

work in process
debit | credit
balance 1/1: 30,000 | credits: 500,000
direct materials: 100,000 |
direct labor: 180,000 |
overhead: 223,200 |
balance 12/31: ? |

factory wages payable
debit | credit
debits: 205,000 | balance 1/1: 14,000
| credits: 200,000
| balance 12/31: 9,000

finished goods
debit | credit
balance 1/1: 50,000 | credits: ?
debits: ? |
balance 12/31: 75,000 |

cost of goods sold
debit | credit
debits: ? |

required:

1. what was the cost of raw materials used in production?
2. how much of the materials in (1) above consisted of indirect materials?
3. how much of the factory labor cost is indirect labor?
4. what was the cost of goods manufactured?
5. what was the unadjusted cost of goods sold? do not include any underapplied or overapplied overhead in your answer.
6. if overhead is applied to production using direct labor cost, what was the predetermined overhead rate?
7. was manufacturing overhead underapplied or overapplied? by how much?
8. compute the ending balance in work in process. assume this balance consists entirely of goods started during the year. if \\$10,500 of this balance is direct labor cost, how much is direct materials cost? applied overhead cost?

complete this question by entering your answers in the tabs below.
required 1 to 5 | required 6 | required 7 | required 8

if overhead is applied to production using direct labor cost, what was the predetermined overhead rate?
the predetermined overhead rate was % of direct labor cost

Explanation:

Identify applied overhead and direct labor cost

Using the Overhead Application knowledge point

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LATEXBLOCK0
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Calculate predetermined overhead rate

Using the Predetermined Overhead Rate knowledge point

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LATEXBLOCK1
$$

Answer:

If overhead is applied to production using direct labor cost, what was the predetermined overhead rate?

The predetermined overhead rate was <blank>124</blank>% of direct labor cost.