Question

Problem 5

Huffington’s controller frequently prepared T-accounts toanalyze inventory.However, he was lazy and often did not completehis work.He is no longer employed by the company.The following wasreconstructed from a scratch pad left on his desk.The missingvalues (?) were illegible.Analyze the information and answer therequirements that follow.

Raw Materials					Cost of Goods Sold
Beg. bal.	?	?				196,400	?
	70,000					196,400	?
	100,000	?
						192,400
	40,800
Work in Process					Factory Overhead
Beg. bal.	17,600	184,000				14,000	?
	45,200					16,000
	?					30,000
	?					?
	190,800	?				?	?
	?					?
Raw Materials
Beg. bal.	52,400	?
	?
	?	?
	40,000

Overhead is applied at 100% of direct labor cost. How much wasdirect labor?

Was overhead over-or underapplied, and by how much?

Which inventory category increased?

Other factory overhead, besides indirect material and indirectlabor, was $30,000. Indirect labor was 25% of the direct labor. Howmuch was indirect material?

How much was cost of goods manufactured?

WORKSHEET # 5

Raw Materials					Cost of Goods Sold
Beg. bal.	?	?				196,400	?
	70,000					196,400	?
	100,000	?
						192,400
	40,800
Work in Process					Factory Overhead
Beg. bal.	17,600	184,000				14,000	?
	45,200					16,000
	?					30,000
	?					?
	190,800	?				?	?
	?					?
Raw Materials
Beg. bal.	52,400	?
	?
	?	?
	40,000