The Lakeview Corporation had the following account balances:

Raw Material Manufacturing Overhead ? 385,000 ?

Bal. 1/1 30,000

420,000

Bal. 12/31 60,000

Work in Process Factory Wages Payable

Bal. 1/1 Direct material
70,000

320,000
810,000 179,000 Bal.1/1
10,000

175,000

Direct labor 11,000

Overhead 400,000 Bal. 12/31 6,000

Bal. 12/31 ?

Finished Goods Cost of Goods Sold ? ?

Bal. 1/1 40,000

?

Bal. 12/31 130,000

Required: a.What was the cost of raw material put into production during the year? b.How much of the material from question 1 consisted of indirect material? c.How much of the factory labor cost for the year consisted of indirect labor? d.What was the cost of goods manufactured for the year? e.What was the cost of goods sold for the year (before considering under- or overapplied overhead)? f.If overhead is applied to production on the basis of direct material, what rate was in effect during the year? g.Was manufacturing overhead under- or overapplied? By how much? h.Compute the ending balance in the Work in Process Inventory account. Assume that this balance consists entirely of goods started during the year. If $32,000 of this balance is direct material cost, how much of it is direct labor cost? Manufacturing overhead cost?

Question

The Lakeview Corporation had the following account balances:

Raw Material	Manufacturing Overhead	?	385,000	?
Bal. 1/1	30,000
	420,000
Bal. 12/31	60,000

Work in Process	Factory Wages Payable
Bal. 1/1 Direct material	70,000 320,000	810,000	179,000	Bal.1/1	10,000 175,000
Direct labor	11,000
Overhead	400,000			Bal. 12/31	6,000
Bal. 12/31	?

Finished Goods	Cost of Goods Sold	?	?
Bal. 1/1	40,000
	?

Bal. 12/31	130,000

Required: a.What was the cost of raw material put into production during the year? b.How much of the material from question 1 consisted of indirect material? c.How much of the factory labor cost for the year consisted of indirect labor? d.What was the cost of goods manufactured for the year? e.What was the cost of goods sold for the year (before considering under- or overapplied overhead)? f.If overhead is applied to production on the basis of direct material, what rate was in effect during the year? g.Was manufacturing overhead under- or overapplied? By how much? h.Compute the ending balance in the Work in Process Inventory account. Assume that this balance consists entirely of goods started during the year. If $32,000 of this balance is direct material cost, how much of it is direct labor cost? Manufacturing overhead cost?

Quizplus · Accepted Answer

The Answer of The Lakeview Corporation had the following account balances:

Raw Material	Manufacturing Overhead	?	385,000	?
Bal. 1/1	30,000
	420,000
Bal. 12/31	60,000

Work in Process	Factory Wages Payable
Bal. 1/1 Direct material	70,000 320,000	810,000	179,000	Bal.1/1	10,000 175,000
Direct labor	11,000
Overhead	400,000			Bal. 12/31	6,000
Bal. 12/31	?

Finished Goods	Cost of Goods Sold	?	?
Bal. 1/1	40,000
	?

Bal. 12/31	130,000

Required: a.What was the cost of raw material put into production during the year? b.How much of the material from question 1 consisted of indirect material? c.How much of the factory labor cost for the year consisted of indirect labor? d.What was the cost of goods manufactured for the year? e.What was the cost of goods sold for the year (before considering under- or overapplied overhead)? f.If overhead is applied to production on the basis of direct material, what rate was in effect during the year? g.Was manufacturing overhead under- or overapplied? By how much? h.Compute the ending balance in the Work in Process Inventory account. Assume that this balance consists entirely of goods started during the year. If $32,000 of this balance is direct material cost, how much of it is direct labor cost? Manufacturing overhead cost?

The Lakeview Corporation Had the Following Account Balances