Reference no: EM133080280

Question - On July 1, a Company's In Progress account showed an initial balance of $9,000. The Materials Inventory account had an initial balance of $40,000. The July production was as follows:

a) Raw materials cost $28,800 requested from production,

b) The production-related payroll was $10,600, of which $2,600 related to indirect work,

c) Indirect materials were purchased and used at a cost of $8,400, and

d) Overhead industrial costs were charged at a rate of 120% the cost of direct labor.

Required -

1. Record the cost of materials, labor, and overhead in T accounts.

2. Calculate the final balance of the Production in Progress account. Assume a $ 45,000 transfer to the Finished Products account over the period.