Assigning Costs: Missing Data
The following T-accounts represent November activity.
EB (11/30) 56,400
BB (11/1) 32,600
Dir. Materials 86,200
Finished Goods Inventory
Cost of Goods Sold
EB (11/30) 101,000
Manufacturing Overhead Control
Applied Manufacturing Overhead
• 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.
Complete the T-accounts.