Question

Manufacturing overhead is applied on the basis of direct labor cost. entries in the t-accounts are related if they have the same reference letter. for example all entries with the reference (b) are part of the same journal entry. using the t-accounts beow select the amount which corresponds to the entry described.

Answer 1

The cost of goods manufactured is $1,170,000.
The amount of applied overhead is: $100,000
The amount of direct labor incurred during the period was: $100,000
Amount of direct materials used is: $100,000
Total amount of raw materials used during the period is:$100,000
The amount of indirect labor incurred during the period was: $1,170,000.
Manufacturing Overhead over or under applied? $1,170,000.
The predetermined overhead rate was:$1,170,000.
The amount of raw materials purchased during the period is: $100,000
Amount of indirect materials used is: $100,000