A new computer virus (AcctBGone) destroyed most of the company records at BackupsRntUs. The computer experts at the company could recover only a few fragments of the company’s factory ledger for March as follows. Direct Materials Inventory BB (3/1) 90,400 Work-In-Process Inventory BB (3/1) 27,200 Finished Goods Inventory EB (3/31) 65,300 Cost of Goods Sold Manufacturing Overhead Control Accounts Payable 53,900 EB (3/31) Further investigation and reconstruction from other sources yielded the following additional information: The controller remembers clearly that actual manufacturing overhead costs are recorded at $18 per direct labor-hour. (The company assigns actual overhead to Work-in-Process Inventory.) The production superintendent’s cost sheets showed only one job in Work-in-Process Inventory on March 31. Materials of $14,800 had been added to the job, and 340 direct labor-hours had been expended at $35 per hour. The Accounts Payable are for direct materials purchases only, according to the accounts payable clerk. He clearly remembers that the balance in the account was $35,000 on March 1. An analysis of canceled checks (kept in the treasurer’s office) shows that payments of $252,900 were made to suppliers during the month. The payroll ledger shows that 5,000 direct labor-hours were recorded for the month. The employment department has verified that there are no variations in pay rates among employees (this infuriated Steve Fung, who believed that his services were underpaid). Records maintained in the finished goods warehouse indicate that the finished goods inventory totaled $107,400 on March 1. The cost of goods manufactured in March was $564,300. Required: Determine the following amounts: a. Work-in-process inventory, March 31. b. Direct materials purchased during March. c. Actual manufacturing overhead incurred during March. d. Cost of goods sold for March.

A new computer virus (AcctBGone) destroyed most of the company records at BackupsRntUs. The computer experts at the company could recover only a few fragments of the company’s factory ledger for March as follows. Direct Materials Inventory BB (3/1) 90,400 Work-In-Process Inventory BB (3/1) 27,200 Finished Goods Inventory EB (3/31) 65,300 Cost of Goods Sold Manufacturing Overhead Control Accounts Payable 53,900 EB (3/31) Further investigation and reconstruction from other sources yielded the following additional information: The controller remembers clearly that actual manufacturing overhead costs are recorded at $18 per direct labor-hour. (The company assigns actual overhead to Work-in-Process Inventory.) The production superintendent’s cost sheets showed only one job in Work-in-Process Inventory on March 31. Materials of $14,800 had been added to the job, and 340 direct labor-hours had been expended at $35 per hour. The Accounts Payable are for direct materials purchases only, according to the accounts payable clerk. He clearly remembers that the balance in the account was $35,000 on March 1. An analysis of canceled checks (kept in the treasurer’s office) shows that payments of $252,900 were made to suppliers during the month. The payroll ledger shows that 5,000 direct labor-hours were recorded for the month. The employment department has verified that there are no variations in pay rates among employees (this infuriated Steve Fung, who believed that his services were underpaid). Records maintained in the finished goods warehouse indicate that the finished goods inventory totaled $107,400 on March 1. The cost of goods manufactured in March was $564,300. Required: Determine the following amounts: a. Work-in-process inventory, March 31. b. Direct materials purchased during March. c. Actual manufacturing overhead incurred during March. d. Cost of goods sold for March.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Problem 7-54 (Algo) Finding Missing Data (LO 7-2, 3)

Direct Materials Inventory
BB (3/1)	90,400

Work-In-Process Inventory
BB (3/1)	27,200

Finished Goods Inventory
EB (3/31)	65,300

Cost of Goods Sold

Manufacturing Overhead Control

Accounts Payable
		53,900	EB (3/31)

Further investigation and reconstruction from other sources yielded the following additional information:

The controller remembers clearly that actual manufacturing overhead costs are recorded at $18 per direct labor-hour. (The company assigns actual overhead to Work-in-Process Inventory.)
The production superintendent’s cost sheets showed only one job in Work-in-Process Inventory on March 31. Materials of $14,800 had been added to the job, and 340 direct labor-hours had been expended at $35 per hour.
The Accounts Payable are for direct materials purchases only, according to the accounts payable clerk. He clearly remembers that the balance in the account was $35,000 on March 1. An analysis of canceled checks (kept in the treasurer’s office) shows that payments of $252,900 were made to suppliers during the month.
The payroll ledger shows that 5,000 direct labor-hours were recorded for the month. The employment department has verified that there are no variations in pay rates among employees (this infuriated Steve Fung, who believed that his services were underpaid).
Records maintained in the finished goods warehouse indicate that the finished goods inventory totaled $107,400 on March 1.
The cost of goods manufactured in March was $564,300.

Required:

Determine the following amounts:

a. Work-in-process inventory, March 31.

b. Direct materials purchased during March.

c. Actual manufacturing overhead incurred during March.

d. Cost of goods sold for March.