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 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
Question – 6
Predetermined rate based on direct wages = Factory Overhead applied to production / Direct wages * 100
= 214500 / 195000 * 100 = 110%
Question – 7
Under / over absorption of overhead
WIP account indactes that 214500 was absorbed during the year. But Factory overhead a/c indicates total debits of 189,500 ……..So this clearly over absorption.
Over absorption of overhead = 214500 – 189500 = 25000
Question – 8
Ending WIP = Total debits in WIP —– 549500 and credits = 515000. So balance = 34500
When wages are 11750, we have overhead = 11750 * 110% = 12925
So Material cost = 34500 – 11750 – 12925 = 9825
Applied overhead cost = 12925
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Tag: selected t-accounts of moore company are given below for the just completed year
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