QS06 - Class Exercises - Accounting 225 Quiz Section#6 Midterm1 Review Class Exercises 1 Rainier Manufacturing uses absorption costing in its job-order

QS06 - Class Exercises - Accounting 225 Quiz Section#6...

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Accounting 225 Quiz Section #6 Midterm1 Review Class Exercises 1 1. Rainier Manufacturing uses absorption costingin itsjob-order costing system. Selectedledger accounts for the year just ended are presented below. Each question mark (?) represents a debit or credit that is missing from the account(s). BB = Beginning Balance, EB = Ending Balance. Raw Materials WIP BB 12,000 BB 7,000 RM ? DM ? ? Purchases 58,000 DL ? MOH ? EB 8,000 EB 9,770 Finished Goods COGS BB 15,200 ? ? Unadjusted COGS ? EB 12,500 Factory Wages Payable MOH - BB IM ? 50,000 IL ? ? Other 55,200 46,000 MOH Total ? 4,000 EB Additional Information: (I suggest you look over the above accounts carefully and read all the information below before you start to respond to. any of the items on the next page) The cost of both direct (DM) and indirect materials (IM) are debited to the Raw Materials Inventory account when materials are purchased. Of the raw materials issued to production during the year, 90% were direct materials and 10% were indirect materials. Of the factory wages incurred during the year, 80% was for direct labor and 20% was for indirect labor. The other MOH of $55,200 indicated in the MOH account includes depreciation, insurance, utilities, and maintenance costs incurred during the year related to production. During the year, Rainier applied manufacturing overhead to production using a single, plant-wide predetermined application rate based on direct labor (DL) cost. Any over- or under-applied overhead is adjusted directly to cost of goods sold at the end of the year. The balance of Work in Process (WIP) at the end of the year related to the only job still in production at that time. Its job cost sheet shows DM of $3,500, DL of $2,200, and MOH applied (MOHA) of $4,070 as of the end of the year.
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Accounting 225 Quiz Section #6 Midterm1 Review Class Exercises 2 Required: Please respond to the items on the next page. You might find it helpful to use the T-accounts
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  • Fall '12
  • ELIZABETH
  • Accounting, Review Class Exercises

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