Answer:
Cost of direct materials used = $201,000
Cost of goods manufactured = $776,400
Cost of goods sold = $803,800
Gross profit = $597,000
Overapplied or underapplied overhead = $26,500 Under-applied
Explanation:
<em>Cost of direct materials used T - Account</em>
Debit :
Beginning Raw Materials $ 43,000
Raw materials purchases $210,000
Totals $253,000
Credit:
Ending Raw Materials $ 52,000
Raw materials used $201,000
Totals $253,000
<em>Cost of goods manufactured T - Account</em>
Debit :
Beginning Work in process $10,200
Raw materials used $201,000
Factory payroll $345,000
Applied Overheads $241,500
Totals $797,700
Credit:
Ending Work in process $21,300
Cost of Goods Manufactured $776,400
Totals $797,700
<em>Cost of goods sold T - Account</em>
Debit :
Beginning Finished goods $63,000
Cost of Goods Manufactured $776,400
Totals $839,400
Credit:
Beginning Finished goods $35,600
Cost of Goods Sold $803,800
Totals $839,400
Trading Account T- Account
Debit :
Sales $1,400,000
Totals $1,400,000
Credit:
Cost of Goods Sold $803,800
Gross Profit $597,000
Totals $1,400,000
<em>Overheads T - Account</em>
Debit :
Indirect materials $15,000
Indirect labor $80,000
Other overhead costs $120,000
Under-Applied $26,500
Totals $241,500
Credit:
Applied Overheads $241,500
Totals $241,500
