Assume that the following events occurred at Lakewood, Incorporated last month. a. Incurred direct labor costs of $950,000. b. Completed work on 70 percent of the work in process. Costs are assigned equally across all work in process. c. Transferred 80 percent of the materials purchased to work in process. d. Purchased $680,000 in direct materials. e. Determined that manufacturing overhead was $615,000. f. The inventory accounts have no beginning balances. All costs incurred were debited to the appropriate account and credited to Accounts Payable. Required: Give the amounts for the following items in the Work-in-Process account: a. Transfers-in (TI) b. Transfers-out (TO) c. Ending balance (EB) Amount
Assume that the following events occurred at Lakewood, Incorporated last month. a. Incurred direct labor costs of $950,000. b. Completed work on 70 percent of the work in process. Costs are assigned equally across all work in process. c. Transferred 80 percent of the materials purchased to work in process. d. Purchased $680,000 in direct materials. e. Determined that manufacturing overhead was $615,000. f. The inventory accounts have no beginning balances. All costs incurred were debited to the appropriate account and credited to Accounts Payable. Required: Give the amounts for the following items in the Work-in-Process account: a. Transfers-in (TI) b. Transfers-out (TO) c. Ending balance (EB) Amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Assume that the following events occurred at Lakewood, Incorporated last month.
a. Incurred direct labor costs of $950,000.
b. Completed work on 70 percent of the work in process. Costs are assigned equally across all work in process.
c. Transferred 80 percent of the materials purchased to work in process.
d. Purchased $680,000 in direct materials.
e. Determined that manufacturing overhead was $615,000.
f. The inventory accounts have no beginning balances. All costs incurred were debited to the appropriate account and credited to
Accounts Payable.
Required:
Give the amounts for the following items in the Work-in-Process account:
a. Transfers-in (TI)
b. Transfers-out (TO)
c. Ending balance (EB)
Amount
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