QUESTION

Telstar uses job order costing. The T-accounts below summarize its production activity for the year.

Raw Materials Inventory
Debit Credit
46,100 25,350
9,100
Factory Wages Payable
Debit Credit
127,100 86,850
41,350
Factory Overhead
Debit Credit
9,100 103,784
41,350
62,470
Work in Process Inventory
Debit Credit
25,350 171,420
86,850
103,784
Finished Goods Inventory
Debit Credit
171,420 154,390


1. Compute the amount for each of the following.

a. Direct materials used
b. Indirect materials used
c. Direct labor used
d. Indirect labor used
e. Cost of goods manufactured
f. Cost of goods sold (before closing over- or underapplied overhead)

2. Compute the amount that overhead is overapplied or underapplied.

Public Answer

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