Acct 6111 Fall 2013 Case 1 Budgeting

Raw MaterialsManufacturing OverheadBal. 1/1DebitsBal. 12/31CreditsWork in processDirect MaterialsDirect LaborOverheadFactory Wages Payable*Finished GoodsCost of Goods Sold1. What was the cost of raw materials put into production during the year?2. How much of the materials in (1) above consisted of indirect materials3. How much of the factory labor cost for the year consisted of indirect labor?4. What was the cost of goods manufactured for the year?5. What was the cost of goods sold for the year (before considering underapplied or overapplied overhead)?6. If overhead is applied to production on the basis of direct materials cost, what rate was in effect during the year?Direct Material CostOverhead AppliedOverhead Rate7. Was manufacturing overhead underapplied or overapplied? By how much?Manufactruing Overhead - DebitsManufactruing Overhead - CreditsOver-applied8. 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?Work in Process - ending BalanceOverhead (125% of Direct Material)Direct Labor (Balancing figure)TotalWatanabe, Inc, allocates its indirect production costs using traditional cost system, on the basis of direct labor costs. The budget of 20x0, indicates the indirect production