Accounting records for Antoinette Designs (AD) for November show the following (each entry is the total of the actual entries for the account for the month): Account Titles Work-in-Process Inventory (Direct Labor) Wages Payable Direct Materials Inventory Accounts Payable Finished Goods Inventory Work-in-Process Inventory Cost of Goods Solda Finished Goods Inventory Debit 7,200 122,130 136,800 131,400 Credit 7,200 122,130 136,800 131,400 aThis entry does not include any over- or underapplied overhead. Over- or underapplied overhead is written off to Cost of Goods Sold once for the month. For November, the amount written off was 5 percent of overhead applied for November. Overhead is applied on the basis of direct labor costs. The Work-in-Process Inventory ending account balance on November 30 was 125 percent of the beginning balance. The Direct Materials Inventory ending balance on November 30 was $2,250 less than the beginning balance. The Finished Goods Inventory beginning balance on November 1 was $13,320. The September income statement shows revenues of $207,000 and a gross profit of $76,500.
Accounting records for Antoinette Designs (AD) for November show the following (each entry is the total of the actual entries for the account for the month): Account Titles Work-in-Process Inventory (Direct Labor) Wages Payable Direct Materials Inventory Accounts Payable Finished Goods Inventory Work-in-Process Inventory Cost of Goods Solda Finished Goods Inventory Debit 7,200 122,130 136,800 131,400 Credit 7,200 122,130 136,800 131,400 aThis entry does not include any over- or underapplied overhead. Over- or underapplied overhead is written off to Cost of Goods Sold once for the month. For November, the amount written off was 5 percent of overhead applied for November. Overhead is applied on the basis of direct labor costs. The Work-in-Process Inventory ending account balance on November 30 was 125 percent of the beginning balance. The Direct Materials Inventory ending balance on November 30 was $2,250 less than the beginning balance. The Finished Goods Inventory beginning balance on November 1 was $13,320. The September income statement shows revenues of $207,000 and a gross profit of $76,500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:e. What was the Work-in-Process
f. What was the Work-in-Process
Inventory on November 1?
Inventory on November 30?
Transcribed Image Text:Accounting records for Antoinette Designs (AD) for November show the following (each entry is the total of the actual entries for the
account for the month):
Account Titles
Work-in-Process Inventory (Direct Labor)
Wages Payable
Direct Materials Inventory
Accounts Payable
Finished Goods Inventory
Work-in-Process Inventory
Cost of Goods Solda
Finished Goods Inventory
Debit
7,200
122, 130
136,800
131,400
Credit
7,200
122, 130
136,800
131,400
aThis entry does not include any over- or underapplied overhead. Over- or underapplied overhead is written off to Cost of Goods Sold
once for the month. For November, the amount written off was 5 percent of overhead applied for November. Overhead is applied on
the basis of direct labor costs.
The Work-in-Process Inventory ending account balance on November 30 was 125 percent of the beginning balance. The Direct
Materials Inventory ending balance on November 30 was $2,250 less than the beginning balance. The Finished Goods Inventory
beginning balance on November 1 was $13,320.
The September income statement shows revenues of $207,000 and a gross profit of $76,500.
Expert Solution
Step 1
Work in Process:
A company's partially finished products that are awaiting completion and ultimate sale, or the worth of these items, are referred to as work in process. WIP is a crucial component in the calculation of inventory on a company's balance sheet, and the phrase is used in supply chain management. Manufactured goods that ordinarily take less than an entire accounting cycle to finish can be considered a work in process.
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