Costs and BalancesAt the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he’s collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured.Data for February Decrease in materials inventory$3,300Materials inventory on Feb. 2850% of materials inventory on Jan. 31Direct materials purchased$12,000Direct materials used3 times the direct labor incurredTotal manufacturing costs incurred in period$29,400Total manufacturing costs incurred in period70% of Cost of Goods ManufacturedTotal manufacturing costs incurred in period$10,000 less than Cost of Goods Sold **Account Balances and Costs Incurred**| Account | Jan. 31 | Feb. 28 ||--------------------------------|---------|---------|| **Materials Inventory** | $6,600 | $3,300 ✓| **Work in Process Inventory** | | $27,000 ✓| **Finished Goods Inventory** | $12,300 | X**Costs Incurred**| Description | Amount | Check ||------------------------------|---------|---------|| **Direct Materials Used** | $15,300 ✓| **Direct Labor Incurred** | $5,100 ✓| **Factory Overhead Incurred**| $6,900 X| **Cost of Goods Sold** | $34,300 X**Explanation**:- This table provides an overview of account balances at the end of January and February and details costs incurred during that period.- Checked (✓) entries indicate verified amounts, while X-marked entries indicate discrepancies or missing information.- Materials Inventory decreased from January to February.- Costs are categorized into Direct Materials Used, Direct Labor, Factory Overhead, and Cost of Goods Sold.

Solution: Factory overhead incurred = Total manufacturing costs incurred in period - Direct…

Answered: At the end of February, after the…

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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Costs and Balances

At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he’s collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured.

Data for February
Decrease in materials inventory	$3,300
Materials inventory on Feb. 28	50% of materials inventory on Jan. 31
Direct materials purchased	$12,000
Direct materials used	3 times the direct labor incurred
Total manufacturing costs incurred in period	$29,400
Total manufacturing costs incurred in period	70% of Cost of Goods Manufactured
Total manufacturing costs incurred in period	$10,000 less than Cost of Goods Sold