Thursday, August 15, 2013

Selected T-accounts for Rolm Company are given below for the just completed year:

Selected T-accounts for Rolm Company are given below for the just completed year:



Raw Materials



Manufacturing Overhead



Bal. 1/1 30,000



Credits ?



Debits 385,000



Credits ?

Debits 420,000























Bal. 12/31 60,000













Work in Process



Factory Wages Payable



Bal. 1/1 70,000



Credits 810,000



Debits 179,000



Bal. 1/1 10,000

Direct materials 320,000











Credits 175,000

Direct labor 110,000









Overhead 400,000











Bal. 12/31 6,000











Bal. 12/31 ?















Finished Goods



Cost of Goods Sold



Bal. 1/1 40,000



Credit ?



Debits ?





Debits ?























Bal. 12/31 130,000













Required:



1.

What was the cost of raw materials put into production during the year? (Omit the \"$\" sign in your response.)

2.

How much of the materials in (1) above consisted of indirect materials? (Omit the \"$\" sign in your response.)

3.

How much of the factory labor cost for the year consisted of indirect labor? (Omit the \"$\" sign in your response.)

4.

What was the cost of goods manufactured for the year? (Omit the \"$\" sign in your response.)

5.

What was the cost of goods sold for the year (before considering underapplied or overapplied overhead)? (Omit the \"$\" sign in your response.)

6.

If overhead is applied to production on the basis of direct materials cost, what rate was in effect during the year? (Omit the \"%\" sign in your response.)

7.

Was manufacturing overhead underapplied or overapplied? By how much? (Input the amount as a positive value. Omit the \"$\" sign in your response.)

8.

Compute the ending balance in the work in process inventory account. Assume that this balance consists entirely of goods started during the year. If $32,000 of this balance is direct materials cost, how much of it is direct labor cost? Manufacturing overhead cost? (Omit the \"$\" sign in your response.)


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