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 $3,600 Materials inventory on Feb. 28 50% of materials inventory on Jan. 31 Direct materials purchased $12,600 Direct materials used 3 times the direct labor incurred Total manufacturing costs incurred in period $28,000 Total manufacturing costs incurred in period 70% of Cost of Goods Manufactured Total manufacturing costs incurred in period $9,000 less than Cost of Goods Sold Account Balances Account Jan. 31 Feb. 28 Costs Incurred Materials Inventory $fill in the blank 54751d073f9df9a_1 $fill in the blank 54751d073f9df9a_2 Direct Materials Used $fill in the blank 54751d073f9df9a_3 Work in Process Inventory 27,000 fill in the blank 54751d073f9df9a_4 Direct Labor Incurred fill in the blank 54751d073f9df9a_5 Finished Goods Inventory fill in the blank 54751d073f9df9a_6 15,500 Factory Overhead Incurred fill in the blank 54751d073f9df9a_7 Cost of Goods Sold fill in the blank 54751d073f9df9a_8

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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	$3,600
Materials inventory on Feb. 28	50% of materials inventory on Jan. 31
Direct materials purchased	$12,600
Direct materials used	3 times the direct labor incurred
Total manufacturing costs incurred in period	$28,000
Total manufacturing costs incurred in period	70% of Cost of Goods Manufactured
Total manufacturing costs incurred in period	$9,000 less than Cost of Goods Sold

	Account Balances
Account	Jan. 31	Feb. 28	Costs Incurred
Materials Inventory	$fill in the blank 54751d073f9df9a_1	$fill in the blank 54751d073f9df9a_2	Direct Materials Used	$fill in the blank 54751d073f9df9a_3
Work in Process Inventory	27,000	fill in the blank 54751d073f9df9a_4	Direct Labor Incurred	fill in the blank 54751d073f9df9a_5
Finished Goods Inventory	fill in the blank 54751d073f9df9a_6	15,500	Factory Overhead Incurred	fill in the blank 54751d073f9df9a_7
			Cost of Goods Sold	fill in the blank 54751d073f9df9a_8

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