Answer the following questions by analysing the T-accounts given below. a) Purchases of direct materialb) The cost of direct material usedc) Why does direct labor account has a credit balance of $5000? Explaind) Direct labor costs assigned to productione) The overhead as a percentage of direct labor costsf) Total manufacturing costs charged to the Work in Process Inventory account during the current yearg) The cost of finished goods manufacturedh) The year-end balance in the Work in Process Inventory accounti) The cost of goods soldj) The total amount of inventory listed in the hear-end balance sheetk) Manufacturing overhead assigned to production Materials InventoryWork in Process Inventory$ 20,000$ 18,000360,000Beg. balanceBeg. balance+ 230,000+ 400,000Ending balance $ 14,000Ending balance $ 25,000Direct LaborFinished Goods Inventory$225,000$230,000Beg. balance$ 98,000Ending balance $ 5,000Ending balance $110,000Manufacturing OverheadCost of Goods Sold$400,000$400,000

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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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 10MC: Direct material costs $3 per unit, direct labor costs $5 per unit, and overhead is applied at the...

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Raw materials inventory, beginning$160Raw materials inventory, ending$280Work in process inventory, beginning $280Work in process inventory, ending $200Finished goods inventory, beginning$480 Finished goods inventory, ending$640Administrative expenses$600Direct labor $800Manufacturing overhead$ 920Purchases of raw materials$480Sales$3,960Selling expenses$560
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