# Question & Answer: Selected T-accounts of Moore Company are given below for the just completed year: What was the cost of raw…..

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Selected T-accounts of Moore Company are given below for the just-completed year: What was the cost of raw materials used in production during the year? How much of the materials in (1) above consisted of indirect materials? How much of the factory labor cost for the year consisted of indirect labor? What was the cost of goods manufactured for the year? What was the unadjusted cost of goods sold for the year? Do not include any underapplied or overapplied overhead in your answer. If overhead is applied to production on the basis of direct labor cost, what predetermined overhead rate was in effect during the year? Was manufacturing overhead underapplied or overapplied? By how much? Compute the ending balance in Work in Process. Assume that this balance consists entirely of goods started during the year. If \$11,750 of this balance is direct labor cost, how much of it is direct materials cost? Applied overhead cost?

Question – 1

Cost of material used in the production = Total available – Balance at the ending

= 30000 + 150000 – 40000 = 140000 worth of material used in production.

Question – 2

Work in process is debited with a material cost of 105000 which is direct material. So Indirect material shall be 140000 – 105000 = 35000

Question – 3

Total Wager cost of current year = 210000 ( see in T-account – Factory wage cost)

Out of this Direct wage cost = 195000 ( refer to WIP account)

So Indirect wage cost = 210000 – 195000 = 15000

Question – 4

Cost of goods manufactured = 515,000 ( refer to WIP a/c …credits)

Question – 5

Cost of goods sold = Beginning Finished goods + Cost of goods manufactured – Ending Finished goods

= 55000 + 515000 – 82500 = 487,500

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