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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
T Accounts Showing Flow of Cost. The Baton Rouge Chemical Company had the following inventories on September 1
|
Raw materials |
$40,000 |
Work in process — materials |
$15,000 |
|
Finished goods |
25,000 |
Work in process — labor |
18,000 |
| Â | Â |
Work in process — factory overhead |
1 3,500 |
During the month of September the cost of materials purchased was $100,000, direct labor cost incurred was $90,000, and factory overhead applicable to production was 75% of the direct labor cost. The September 30 inventories were:
|
Raw materials |
$30,000 |
Work in process — materials |
$12,000 |
|
Finished goods |
47,000 |
Work in process — labor |
20,000 |
| Â | Â |
Work in process — factory overhead |
15,000 |
Required: Using three accounts for work in process, prepare T accounts showing the flow of the cost of goods manufactured and sold.
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