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Item8 10 points Return to questionItem 8 Selected ledger accounts for Realm Company are given below for the just-completed year: Raw Materials Bal. 1/1 30,000 Credits ? Debits 420,000 Bal. 31/12 60,000 Manufacturing Overhead Debits 385,000 Credits ? Work in Process Bal. 1/1 70,000 Credits 810,000 Direct materials 320,000 Direct labour 110,000 Overhead 400,000 Bal. 31/12 ? Factory Wages Payable Debits 179,000 Bal. 1/1 10,000 Credits 175,000 Bal. 31/12 6,000 Finished Goods Bal. 1/1 40,000 Credit ? Debits ? Bal. 31/12 130,000 Cost of Goods Sold Debits ? Required: 1. What was the cost of raw materials put into production during the year? 2. How much of the materials in requirement 1 consisted of indirect materials? 3. How much of the factory labour cost for the year consisted of indirect labour? 4. What was the cost of goods manufactured for the year? 5. What was the cost of goods sold for the year (before considering underapplied or overapplied overhead)? 6. If overhead is applied to production on the basis of direct materials cost, what rate was in effect during the year? 7. Was manufacturing overhead underapplied or overapplied? By how much? 8. Compute the ending balance in the Work in Process inventory account. Assume that this balance consists entirely of goods started during the year. If $32,000 of this balance is direct materials cost, how much of it is direct labour cost? Manufacturing overhead cost?

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