Homework Help is Here – Start Your Trial Now!
Business
Accounting
a) Purchases of direct material b) The cost of direct material used c) Why does direct labor account has a credit balance of $5000? Explain d) Direct labor costs assigned to production e) The overhead as a percentage of direct labor costs

a) Purchases of direct material b) The cost of direct material used c) Why does direct labor account has a credit balance of $5000? Explain d) Direct labor costs assigned to production e) The overhead as a percentage of direct labor costs

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Answer the following questions by analysing the T-accounts given below.  

  1. a) Purchases of direct material
  1. b) The cost of direct material used
  1. c) Why does direct labor account has a credit balance of $5000? Explain
  1. d) Direct labor costs assigned to production
  1. e) The overhead as a percentage of direct labor costs
  1. f) Total manufacturing costs charged to the Work in Process Inventory account during the current year
  1. g) The cost of finished goods manufactured
  1. h) The year-end balance in the Work in Process Inventory account
  1. i) The cost of goods sold
  1. j) The total amount of inventory listed in the hear-end balance sheet
  2. k) Manufacturing overhead assigned to production
Materials Inventory Work in Process Inventory $ 20,000 $ 18,000 360,000 Beg. balance Beg. balance + 230,000 + 400,000 Ending balance $ 14,000 Ending balance $ 25,000 Direct Labor Finished Goods Inventory $225,000 $230,000 Beg. balance $ 98,000 Ending balance $ 5,000 Ending balance $110,000 Manufacturing Overhead Cost of Goods Sold $400,000 $400,000
Transcribed Image Text:Materials Inventory Work in Process Inventory $ 20,000 $ 18,000 360,000 Beg. balance Beg. balance + 230,000 + 400,000 Ending balance $ 14,000 Ending balance $ 25,000 Direct Labor Finished Goods Inventory $225,000 $230,000 Beg. balance $ 98,000 Ending balance $ 5,000 Ending balance $110,000 Manufacturing Overhead Cost of Goods Sold $400,000 $400,000
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost Sheet
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS