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 Materials inventory on Feb. 28 Direct materials purchased Direct materials used Total manufacturing costs incurred in period Total manufacturing costs incurred in period Total manufacturing costs incurred in period $3,300 50% of materials inventory on Jan. 31 $11,700 3 times the direct labor incurred $28,000 70% of Cost of Goods Manufactured $7,000 less than Cost of Goods Sold Account Materials Inventory Work in Process Inventory Account Balances Jan. 31 Feb. 28 Costs Incurred 6,000 X $ Finished Goods Inventory 27,000 11,200 X 3,000 X Direct Materials Used 14,700 X Direct Labor Incurred 15,500 Factory Overhead Incurred Cost of Goods Sold 15,600 X 5,200 X 7,900 X 36,700 X
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 Materials inventory on Feb. 28 Direct materials purchased Direct materials used Total manufacturing costs incurred in period Total manufacturing costs incurred in period Total manufacturing costs incurred in period $3,300 50% of materials inventory on Jan. 31 $11,700 3 times the direct labor incurred $28,000 70% of Cost of Goods Manufactured $7,000 less than Cost of Goods Sold Account Materials Inventory Work in Process Inventory Account Balances Jan. 31 Feb. 28 Costs Incurred 6,000 X $ Finished Goods Inventory 27,000 11,200 X 3,000 X Direct Materials Used 14,700 X Direct Labor Incurred 15,500 Factory Overhead Incurred Cost of Goods Sold 15,600 X 5,200 X 7,900 X 36,700 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Materials inventory on Feb. 28
Direct materials purchased
Direct materials used
Total manufacturing costs incurred in period
Total manufacturing costs incurred in period
Total manufacturing costs incurred in period
$3,300
50% of materials inventory on Jan. 31
$11,700
3 times the direct labor incurred
$28,000
70% of Cost of Goods Manufactured
$7,000 less than Cost of Goods Sold
Account Balances
Account
Materials Inventory
Work in Process Inventory
Jan. 31
Feb. 28
Costs Incurred
6,000 X $
Finished Goods Inventory
27,000
11,200 X
3,000 X Direct Materials Used
14,700 X Direct Labor Incurred
15,500 Factory Overhead Incurred
$
15,600 X
5,200 X
7,900 X
Cost of Goods Sold
36,700 X
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