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.