Examlex

Solved

Reference: 03-06
the Milo Company's Records for May Contained the Following

question 56

Multiple Choice

Reference: 03-06
The Milo Company's records for May contained the following information:  Actual direct labour-hours 9,000 hours  Actual direct labour cost $47,000 Direct material purchased 16,000 Direct material used 14,000 Cost of goods sold 100,000 Overapplied overhead 5,000 Ending inventories:  Raw materials 30,000 Work in process 50,000 Finished goods 70,000\begin{array} { | l | l | l | } \hline \text { Actual direct labour-hours } & 9,000 & \text { hours } \\\hline \text { Actual direct labour cost } & \$ 47,000 & \\\hline \text { Direct material purchased } & 16,000 & \\\hline \text { Direct material used } & 14,000 & \\\hline \text { Cost of goods sold } & 100,000 & \\\hline \text { Overapplied overhead } & 5,000 & \\\hline \text { Ending inventories: } & & \\\hline \text { Raw materials } & 30,000 & \\\hline \text { Work in process } & 50,000 & \\\hline \text { Finished goods } & 70,000 & \\\hline\end{array} The company uses a predetermined overhead rate of $5.00 per direct labour hour to apply manufacturing overhead to jobs.
-The cost of raw materials purchased during the year amounted to:


Definitions:

Inventory

Raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Sales Journal

A dedicated financial ledger designed for documenting all credit sales transactions.

Posting

The act of recording financial transactions in the ledger of an accounting system.

Account Numbers

are unique identifiers assigned to specific accounts in an accounting system to track financial transactions.

Related Questions