Medlar Corp

question 112

Essay

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:
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.

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Definitions:

Rapid Cycles

In the context of bipolar disorder, experiencing four or more episodes of mania, hypomania, or depression within a year.

Hyperactivity

Excessive movement and activity which may be manifested by symptoms like fidgeting or talkativeness, often associated with ADHD.

Caloric Intake

The total number of calories consumed through eating and drinking, which is crucial for energy balance and nutritional health.

Not Eaten

A state or condition of having skipped or missed consuming food for a certain period.