Wright Bros. Inc. manufacturers retro bicycles. Their accountant, left unexpectedly, resulting in incomplete processing of ledger postings. Wilbur, one of the owners, has asked you to determine selected information based upon the following incomplete data. Assume that no indirect material cost was incurred during the period.
Additionally, the following journal entries were made available to you.
Required:
a. Determine the cost of direct materials used for the period.
b. Determine total actual MOH cost for the period.
c. Does Wright Bros. Inc. use the direct write-off method or the prorated method to eliminate any overapplied or underapplied MOH? How can you tell? Explain.

Question

Wright Bros. Inc. manufacturers retro bicycles. Their accountant, left unexpectedly, resulting in incomplete processing of ledger postings. Wilbur, one of the owners, has asked you to determine selected information based upon the following incomplete data. Assume that no indirect material cost was incurred during the period.
  Additionally, the following journal entries were made available to you.
    Required:
a. Determine the cost of direct materials used for the period.
b. Determine total actual MOH cost for the period.
c. Does Wright Bros. Inc. use the direct write-off method or the prorated method to eliminate any overapplied or underapplied MOH? How can you tell? Explain.

Quizplus · Accepted Answer

The Answer of Wright Bros. Inc. manufacturers retro bicycles. Their accountant, left unexpectedly, resulting in incomplete processing of ledger postings. Wilbur, one of the owners, has asked you to determine selected information based upon the following incomplete data. Assume that no indirect material cost was incurred during the period.
  Additionally, the following journal entries were made available to you.
    Required:
a. Determine the cost of direct materials used for the period.
b. Determine total actual MOH cost for the period.
c. Does Wright Bros. Inc. use the direct write-off method or the prorated method to eliminate any overapplied or underapplied MOH? How can you tell? Explain.