Using T accounts to represent various manufacturing accounts reflect the flow of the costs for this calendar quarter as summarized below. (Show your work)
Account balances at the start of the quarter are: Materials, $218,000; Work in process, -0-; Finished goods, $240,000; Factory labor, -0-; Manufacturing overhead, $26,800; Cost of goods sold, $324,000.
Materials purchased during the quarter, $182,000; materials issued to maintenance crew cost, $12,400; materials put into production cost, $204,000.
Labor cost incurred during the quarter, $386,000; $352,000 of this was direct labor for the production of goods and the balance was for the cost of maintenance and supervisory staffs.
Various manufacturing overhead expenses were paid or accrued totaling $74,400.
Overhead costs are allocated to production at 30% of direct labor costs. (see pages 871 – 875 of Chapter 19 of the textbook)
The cost of manufactured goods completed during the quarter was $610,000.
Ending inventories were: Materials, $ ??; Work in Process, $ ??; and Finished Goods, $215,000( $ ?? = compute amount; show work ).