Partially completed T-accounts and additional information for Cardinals, Inc., for the month of November appear below. Materials
Question:
Partially completed T-accounts and additional information for Cardinals, Inc., for the month of November appear below.
Materials inventory | ||||
BB (11/1) | 36,000 | |||
126,000 | 95,000 |
inventory in progress | ||||
BB (11/1) | 66,000 | |||
Manpower of labour | 50,000 |
Finished Goods Inventory | ||||
BB (11/1) | 86,000 | |||
186,000 | 126,000 |
cost of goods sold | ||||
Control of general manufacturing expenses | ||||
84,000 |
Manufacturing overhead applied | ||||
Additional information for November below:
- The labor wage was $20 per hour.
- Manufacturing overhead is applied at $28 per direct labor hour.
- For the month, sales revenue was $300,000 and selling and administrative costs were $54,000.
- This company has no indirect materials or supplies.
Required:
a. What amount of direct material cost was delivered to production during November?
b. How much overhead was applied to the products during November?
C. What was the cost of finished goods during November?
d. What was the balance of the Work In Process Inventory account at the end of November?
e. What was the over- or under-applied manufacturing overhead cost for November?
F. What was the operating profit (loss) for November? Any over- or under-applied overhead costs are written off in cost of goods sold.
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher