Ref Account Debit Credit

a Raw material 3,15,000

Accounts payable 3,15,000

b1 Work in process 216,000

Raw material 216,000

b2 Manufacturing 54,000
overhead

Raw material 54,000

c1 Work in process 80,000

Labor cost 80,000

c2 Manufacturing 1,10,000
overhead

Labor cost 1,10,000

d Manufacturing 63,000
overhead

Depreciation 63,000

e Manufacturing 85,000
overhead

Accounts payable 85,000

f Work in process 30,000

Manufacturing 30,000
overhead

g Finished goods 3,26,000

Work in process 3,26,000
T Accounts:
Accounts payable
Ref Debit Ref Credit
a 3,15,000
e 85,000

Depreciation
Ref Debit Ref Credit
d 63,000

Finished goods
Ref Debit Ref Credit
g 3,26,000

Labor cost
Ref Debit Ref Credit
C1 80,000
C2 1,10,000

Manufacturing overhead
Ref Debit Ref Credit
b2 54,000
C2 1,10,000
d 63,000
e 85,000
f 30,000
 Raw material
Ref Debit Ref Credit
a 3,15,000
b1 2,16,000
b2 54,000

Work in process
Ref Debit Ref Credit
b1 2,16,000
C1 80,000
f 30,000
g 3,26,000

Unit product cost=326000/8000=40.75

Overhead applied;

Overhead cost 4320000

Estimated hours 576000
Cost per hour 7.5
Hours used 4000
Cost applied 30000