Question

Selected T-accounts of Moore Company are given below for the just completed year: Raw Materials Bal. 1/1 15,000 Credits ? Debits 120,000 Bal. 12/31 25,000 Manufacturing Overhead Debits 230,000 Credits ? Work in Process Bal. 1/1 20,000 Credits 470,000 Direct materials 90,000 Direct labor 150,000 Overhead 240,000 Bal. 12/31 ? Factory Wages Payable Debits 185,000 Bal. 1/1 9,000 Credits 180,000 Bal. 12/31 4,000 Finished Goods Bal. 1/1 40,000 Credits ? Debits ? Bal. 12/31 60,000 Cost of Goods Sold Debits ? Required: 1. What was the cost of raw materials used in production during the year? 2. How much of the materials in (1) above consisted of indirect materia

Answer 1

Answer: (1) $110,000

(2) $20,000

Step-by-step explanation:

(1) Cost of raw materials used in production during the year:

= Beginning Balance + Purchase - Ending Balance

= 15,000 + 120,000 - 25,000

= $110,000

(2) Materials in (1) above consisted of indirect material:

= cost of raw materials put into production during the year - Direct Material used in WIP

= $110,000 - 90,000

= $20,000