Materials requisitioned Balance 1230 17000 a 4200 132600 17000 119800 a Direct

# Materials requisitioned balance 1230 17000 a 4200

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Materials requisitioned Balance 12/30 17,000 a \$4,200 + \$132,600 – \$17,000 = \$119,800 : 10
Work-in-process inventory on 12/31 = Work-in-process inventory on 12/30 + Direct manufacturin g labor incurred on 12/31 + Manufacturing overhead allocated on 12/31 = \$18,000 + \$8,600 + \$9,460 = \$36,060 We can now use the T-account equation for work-in-process inventory account from 12/1 to 12/31, as follows. Let x = Direct manufacturing labor for December Then 1.10 x = Manufacturing overhead allocated for December Work-in- process inventory on 12/1 + Direct materials added in December + Direct manufacturing labor added in December + Manufacturing overhead allocated in December Cost of goods manufactured in December = Work-in- process inventory on 12/31 \$13,400 + \$119,800 + x + 1.10 x – \$468,000 = \$36,060 2.10 x = \$36,060 – \$13,400 – \$119,800 + \$468,000 2.10 x = \$370,860 x = \$370,860 \$176,600 2.10 Total direct manufacturing labor for December = \$176,600 Total manufacturing overhead allocated in December = 1.10 \$176,600 = \$194,260 Finished Goods Control Beginning balance 12/1 Cost of goods manufactured 8,800 468,000 438,000 c Cost of goods sold Balance 12/31 38,800 c \$8,800 + \$468,000 – \$38,800 = \$438,000 (e) Cost of goods sold for December before adjustments for under- or overallocated overhead equals \$438,000: Cost of Goods Sold Cost of goods sold 438,000 3,460 (c) Closing entry Manufacturing Department Overhead Control Balance through 12/30 (a) Indirect manufacturing labor 12/31 188,000 2,800 190,800 (c) Closing entry Manufacturing Overhead Allocated 11