Granger Products recorded the following transactions for the just completed month. The company had no beginning inventories.
1. Post the above transactions to T-accounts.( Cash, Raw Materials, Work in Process, Finished Goods, Manufacturing Overhead, Cost of Goods Sold) e-f is where the confusion lies
| 2. |
Determine the cost of goods sold for the period. |
| a. |
$75,000 in raw materials were purchased for cash. |
| b. |
$72,500 in raw materials were requisitioned for use in production. Of this amount, $65,500 was for direct materials and the remainder was for indirect materials.
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| c. |
Total labor wages of $152,800 were incurred and paid. Of this amount, $134,800 was for direct labor and the remainder was for indirect labor.
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| d. |
Additional manufacturing overhead costs of $125,400 were incurred and paid. |
| e. |
Manufacturing overhead costs of $168,500 were applied to jobs using the company's predetermined overhead rate.
|
| f. |
All of the jobs in progress at the end of the month were completed and shipped to customers. |
| g. |
Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold. |