Assigning Costs: Missing Data
The following T-accounts represent November activity.
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Materials Inventory
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Work-In-Process Inventory
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EB (11/30) 56,400
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BB (11/1) 32,600
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Dir. Materials 86,200
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Finished Goods Inventory
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Cost of Goods Sold
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EB (11/30) 101,000
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Manufacturing Overhead Control
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Applied Manufacturing Overhead
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Actual
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264,000
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Wages Payable
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Sales Revenue
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725,400
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Additional Data
• Materials of $113,600 were purchased during the month, and the balance in the Materials Inventory account increased by $11,000.
• Overhead is applied at the rate of 150 percent of direct labor cost.
• Sales are billed at 180 percent of cost of goods sold before the over- or underapplied overhead is prorated.
• The balance in the Finished Goods Inventory account decreased by $28,600 during the month before any proration of under- or overapplied overhead.
• Total credits to the Wages Payable account amounted to $202,000 for direct and indirect labor.
• Factory depreciation totaled $48,200.
• Overhead was underapplied by $25,080. Overhead other than indirect labor, indirect materials, and depreciation was $198,480, which required payment in cash. Underapplied overhead is to be allocated.
• The company has decided to allocate 25 percent of underapplied overhead to Work-in-Process Inventory, 15 percent to Finished Goods Inventory, and the balance to Cost of Goods Sold. Balances shown in T-accounts are before any allocation.
Required
Complete the T-accounts.