Fall 2013 Assignment
Case 3: Product Cost Flows
Selected T-accounts for Muscat Company are given below
for the just completed year:
Raw Materials Manufacturing
Bal. 1/1 30,000 Credits Debits 385,000 Credits
Bal, 12/31 60,000
in Process Factory Wages Payable
Bal. 1/1 70,000 Credits
810.000 Debits 179,000 Bal, 1/1 10,000
Direct materials 320,000 Credits 175,000
Direct labor 110.000 Bal.
Goods Cost of Goods Sold
Bal. 1/1 40.000 Credits Debits
Bal, 12/31 130.000
was the cost of raw materials put into production during the year?
much of the materials in (1) above consisted of indirect materials?
much of the factory labor cost for the year consisted of indirect labor?
was the cost of goods manufactured for the year?
was the cost of goods sold for the year (before considering under-applied or
overhead is -applied to production on the basis of direct materials cost, what
rate was in effect during the year?
manufacturing overhead under-applied or over-applied? By how much?
8. Compute the ending balance in the Work
in Process inventory account. Assume that this balance consists entirely of
goods started during the year. If $32,000 of this balance is direct materials
cost, how much of it is direct labor cost? Manufacturing overhead cost?