Reference no: EM132830496

Question - ROK Corporation has provided you with the following information for 2010: (hint - set up T accounts for all accounts and post the transactions to the T accounts)

A. Total Raw Materials Purchased and Used: $10,000 ($8,000 direct and $2,000 indirect).

B. Factory Labor Incurred $8,000 ($6,000 direct and $2,000 indirect).

C. Manufacturing overhead costs incurred exclusive of indirect materials and indirect labor costs: $1,000.

D. Manufacturing Overhead is applied to the product based on 80% of direct labor dollars.

E. $15,000 of product was completed during the period.

Required - Answer the following questions:

1. How much factory overhead was applied to the product?

2. What is the total amount of costs that were charged to the Work in Process account?

3. What is the balance in the Work in Process account at the end of the period?

4. After applying the factory overhead to the product, what is the balance in the factory overhead account and is it a debit or a credit balance?