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Question
Medlar Corp. maintains a Web-based general ledger. Overhead is applied on the basis of direct labor costs. Its bookkeeper accidentally deleted most of the entries that had been recorded for January. A printout of the general ledger (in T-account form) showed the following:
| Raw Materials Inventory | Goods in Process Inventory | ||||||||
| Bal.1/1 10,000 | Bal 1/1 4,000 | f) | |||||||
| (a) | (b) | (c) | |||||||
| (d) | |||||||||
| (e) | |||||||||
| 17,500 | (g) | ||||||||
| Accounts Payable | Finished Goods Inventory | ||||||||
| (h) | Bal. 1/1 5,000 | (j) | (l) | ||||||
| (i) | (k) | ||||||||
| Bal. 1/31 9,000 | Bal. 1/31 15,000 | ||||||||
| Factory Overhead | Cost of Goods Sold | ||||||||
| (m) | (n) | (o) | |||||||
A review of the prior year's financial statements, the current year's budget, and January's source documents produced the following information:
(1) Accounts Payable are used for raw material purchases only. January purchases were $49,000.
(2) Factory overhead costs for January were $17,000 none of which is indirect materials.
(3) The January 1 balance for finished goods inventory was $10,000.
(4) There was a single job in process at January 31 with a cost of $2,000 for direct materials and $1,500 for direct labor.
(5) Total cost of goods manufactured for January was $90,000.
(6) All direct laborers earn the same rate ($13/hour). During January, 2,500 direct labor hours were worked.
(7) The predetermined overhead allocation rate is based on direct labor costs. Budgeted (expected) overhead for the year is $195,000 and budgeted (expected) direct labor is $390,000.
Write in the missing amounts (a) through (o) in the T-accounts above.
Answer
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