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The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost. End of Inventories Period Beginnin g of period $ 36,000 9,700 Raw materials $ 59,000 Work in process Finished goods 19,300 34,200 57,000 Cost incurred for the period Raw materials purchases $ 191,000 Factory payroll 150,000 Factory overhead (actual) Indirect materials used 12,000 Indirect labor used 34,500 Other overhead costs 118,500 1. In the Raw Materials Inventory T-account, insert amounts for beginning and ending balances along with purchases and indirect materials used. Solve for direct materials used in the period. 2. Compute the cost of direct labor used for the period. 3. In the Work in Process Inventory T-account, insert amounts for beginning and ending balances along with direct materials used (from part 1), direct labor used (from part 2), and applied overhead. Solve for cost of goods manufactured in the period. 4. In the Finished Goods Inventory T-account, insert amounts for beginning and ending balances along with cost of goods manufactured (from part 3). Solve for cost of goods sold in the period (do not consider any under- or overapplied overhead). 5. In the Factory Overhead T-account, insert amounts for indirect materials used, indirect labor used, other overhead costs, and applied overhead. Solve for underapplied or overapplied overhead. Raw Materials Inventory Work in Process Inventory Beginning Beginning Beginning Beginning Ending Ending Ending Ending Finished Goods Inventory Factory Overhead Beginning Beginning Beginning Beginning 12,000 Ending 0 Ending 34,500 118,500 165,000 Required 1 3 4 and 5 Required 2 Compute the cost of direct labor used for the period. The cost of direct labor for the period Cost of direct labor used

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anthougo

The T-accounts and other computations for ADT Company are prepared as follows:

1. Raw Materials

Account Title                          Debit             Credit

Beginning balance            $ 36,000

Raw materials purchases $ 191,000

Work in Process                                       $156,000

Factory Overhead                                        12,000

Ending balance                                        $ 59,000

2. The cost of direct materials used for the period is $156,000.

3. Work in Process

Account Title                        Debit             Credit

Beginning balance             $ 9,700

Raw materials                    156,000

Factory payroll                   115,500

Factory overhead applied 63,525

Finished Goods                                       $325,425

Ending balance                                         $ 19,300

4. The cost of goods manufactured in the period is $325,425.

5. Finished Goods

Account Title                        Debit             Credit

Beginning balance          $57,000

Work in Process              325,425

Cost of goods sold                                $348,225

Ending balance                                      $ 34,200

6. The cost of goods sold in the period is $348,225.

7. Factory Overhead

Account Title                        Debit             Credit

Indirect materials used   $ 12,000

Indirect labor used            34,500

Other overhead costs      118,500

Work in Process                                    $ 63,525

Underapplied overhead                       $101,475

8. The underapplied overhead is $101,475.

9. The cost of direct labor used for the period is $115,500.

Data and Calculations:

                            Beginning Period    Ending of period

Raw materials               $ 36,000              $ 59,000

Work in process                 9,700                  19,300

Finished goods                57,000                 34,200

Cost incurred for the period:

Raw materials purchases $ 191,000

Factory payroll 150,000

Factory overhead (actual):

Indirect materials used 12,000

Indirect labor used 34,500

Other overhead costs 118,500

Direct labor cost = $115,500 ($150,000 - $34,500)

Factory overhead applied = $63,525 ($115,500 x 55%)

Thus, using the T-accounts, the costs of direct materials, direct labor used, goods manufactured, and goods sold are determined.

Learn more about T-accounts at https://brainly.com/question/17463664

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