Please answer the following questions relating to Ranjot and Himanshu company accounts (in thousands of dollars):

Raw Materials							Cost of Goods Sold
Bal Beg.		100		Credits	?		Debits	?
Debits		900
Bal. End		----------150
Manufacturing Overhead							Work in Process
Debits		2200	Credits		?		Bal Beg.	100		Credits	3500
							Dir Mat	700
							Dir Lab	1000
							Overhead Bal End	2000 ?
Wages & Salaries Payable							Finished Goods
Debits	1300			Bal Beg.	200		Bal Beg. 100			Credits ?
				Credits	1200 --------		Debits ? ---------
				Bal End	100		Bal End 200

Required:

1. What was the cost of raw materials put into production during the year?
2. How much of the materials in part (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 under- or overapplied overhead)?
6. If overhead is applied to production on the basis of direct labour cost, what rate was in effect during the year?
7. Was manufacturing overhead under- or over - applied? 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 $75,000 of this balance is direct labour cost, how much of it is direct material cost? Manufacturing overhead cost?

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