Partially completed T-accounts and additional information for Dumfries Designs for the month of August following: Materials Inventory
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Question:
Partially completed T-accounts and additional information for Dumfries Designs for the month of August following:
Materials Inventory | ||||
---|---|---|---|---|
Debit | Credit | |||
BB (8/1) | 165,000 | |||
682,000 | 610,000 |
Work-in-Process Inventory | ||||
---|---|---|---|---|
Debit | Credit | |||
BB (8/1) | 307,000 | |||
Labor | 576,800 |
Finished Goods Inventory | ||||
---|---|---|---|---|
Debit | Credit | |||
BB (8/1) | 589,000 | |||
960,000 | 777,500 |
Cost of Goods Sold | ||||
---|---|---|---|---|
Debit | Credit | |||
Manufacturing Overhead Control | ||||
---|---|---|---|---|
Debit | Credit | |||
462,300 | ||||
Applied Manufacturing Overhead | ||||
---|---|---|---|---|
Debit | Credit | |||
453,200 | ||||
Additional information for August follows:
- The labor wage rate was $28 per hour.
- During the month, sales revenue was $1,730,000, and selling and administrative costs were $324,600.
- This company has no indirect materials or supplies.
- The company applies manufacturing overhead on the basis of direct labor hours.
Required:
What was the balance of the Work-in-Process Inventory account at the end of August?
What was the operating profit for August? Any over-or underapplied overhead is written off to Cost of Goods Sold.
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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