If the trial balance is in balance, it can be assumed that all ...

[SO00]

If the trial balance is in balance, it can be assumed that all journal entries were posted correctly and no errors weremade.
 a. True
  b. False
 
   Indicate whether the statement is true or false

Question 2

Constanza Company has the following balances as of the year ended December 31, 2014:
 
  Direct Materials Inventory 30,000 Dr.
   WIP Inventory 69,000 Dr.
   Finished Goods Inventory 99,000 Dr.
   Underapplied Factory Department Overhead 8,000 Dr.
   Cost of Goods Sold 149,000 Dr.
 
  Additional information is as follows:
 
   Cost of direct materials purchased during 2014 82,000
   Cost of direct materials requisitioned in 2014 74,000
   Cost of goods completed during 2014 204,000
   Factory overhead applied (120 of direct labor) 96,000
 
  Required:
  a. Compute beginning direct materials inventory.
  b. Compute beginning WIP inventory.
  c. Compute beginning finished goods inventory.
  d. Compute actual factory overhead incurred.

[lgoldst9]

Answer to Question 1

False

Answer to Question 2

Answer:
a. Beg Inv + 82,000 - 74,000 = 30,000. Beg Inv = 22,000
b. 96,000/120 = 80,000 direct labor costs incurred
204,000 - 74,000 - 80,000 - 96,000 + 69,000 = 23,000
c. 149,000 - 204,000 + 99,000 = 44,000
d. 96,000 + 8,000 = 104,000