Betty's Holiday Styles has been busy in the month of November! It seems Betty's marketing efforts have paid off, as she has answered many calls to help decorate homes for the upcoming holidays. The company carries an inventory of decorative items in its store and then installs them in creative and fun ways. The MOH costs are fairly low, since the company has just a small space to hold the inventory. The applied MOH rate is $10 per direct labor hour. As of November 30, the company carries the following balances in its inventory accounts. DM Inventory $6,900 WIP Inventory 8,650 FG Inventory 0 During December, the following events occurred. 1. Purchased direct materials costing $15,400 on account. 2. Used $20,000 of direct materials for jobs. 3. Paid direct labor wages for 134 hours of labor ($25/hr). 4. Applied MOH cost to jobs. 5. Actually incurred $2,800 in MOH costs. 6. Completed all jobs by the end of the month. 7. Billed clients $45,600 for jobs completed. 8. Closed under- or overapplied MOH using the direct write-off method. (a) Calculate the ending balances in all inventory accounts as of December 31. (b) Ending Balances DM Inventory $ WIP Inventory $ FG Inventory eTextbook and Media Save for Later Attempts: 0 of 2 used Submit Answer Prepare the journal entry to write off any under- or overapplied MOH directly to COGS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
Betty's Holiday Styles has been busy in the month of November! It seems Betty's marketing efforts have paid off, as she has answered many calls to help decorate homes for the upcoming holidays. The company carries an inventory of decorative items in its store and then installs them in creative and fun ways. The MOH costs are fairly low, since the company has just a small space to hold the inventory. The applied MOH rate is $10 per direct labor hour. As of November 30, the company carries the following balances in its inventory accounts. DM Inventory $6,900 WIP Inventory 8,650 FG Inventory 0 During December, the following events occurred. 1. Purchased direct materials costing $15,400 on account. 2. Used $20,000 of direct materials for jobs. 3. Paid direct labor wages for 134 hours of labor ($25/hr). 4. Applied MOH cost to jobs. 5. Actually incurred $2,800 in MOH costs. 6. Completed all jobs by the end of the month. 7. Billed clients $45,600 for jobs completed. 8. Closed under- or overapplied MOH using the direct write-off method. (a) Calculate the ending balances in all inventory accounts as of December 31. (b) Ending Balances DM Inventory $ WIP Inventory $ FG Inventory eTextbook and Media Save for Later Attempts: 0 of 2 used Submit Answer Prepare the journal entry to write off any under- or overapplied MOH directly to COGS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Betty's Holiday Styles has been busy in the month of November! It seems Betty's marketing efforts have paid off, as she has answered
many calls to help decorate homes for the upcoming holidays. The company carries an inventory of decorative items in its store and
then installs them in creative and fun ways. The MOH costs are fairly low, since the company has just a small space to hold the
inventory. The applied MOH rate is $10 per direct labor hour.
As of November 30, the company carries the following balances in its inventory accounts.
DM Inventory
$6,900
WIP Inventory
8,650
FG Inventory
0
During December, the following events occurred.
1. Purchased direct materials costing $15,400 on account.
2.
Used $20,000 of direct materials for jobs.
3.
Paid direct labor wages for 134 hours of labor ($25/hr).
4.
Applied MOH cost to jobs.
5.
Actually incurred $2,800 in MOH costs.
6.
Completed all jobs by the end of the month.
7.
Billed clients $45,600 for jobs completed.
8.
Closed under- or overapplied MOH using the direct write-off method.
Transcribed Image Text:(a)
Calculate the ending balances in all inventory accounts as of December 31.
(b)
Ending Balances
DM Inventory
$
WIP Inventory
$
FG Inventory
eTextbook and Media
Save for Later
Attempts: 0 of 2 used
Submit Answer
Prepare the journal entry to write off any under- or overapplied MOH directly to COGS. (Credit account titles are automatically
indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
Account Titles and Explanation
Debit
Credit
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