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 Account Materials Inventory Work in Process Inventory Finished Goods Inventory Jan. 31 $2,700 50% of materials inventory on Jan. 31 $12,600 3 times the direct labor incurred $28,700 Account Balances 27,000 70% of Cost of Goods Manufactured $9,000 less than Cost of Goods Sold Feb. 28 Costs Incurred Direct Materials Used Direct Labor Incurred 16,500 Factory Overhead Incurred Cost of Goods Sold
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 Account Materials Inventory Work in Process Inventory Finished Goods Inventory Jan. 31 $2,700 50% of materials inventory on Jan. 31 $12,600 3 times the direct labor incurred $28,700 Account Balances 27,000 70% of Cost of Goods Manufactured $9,000 less than Cost of Goods Sold Feb. 28 Costs Incurred Direct Materials Used Direct Labor Incurred 16,500 Factory Overhead Incurred Cost of Goods Sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
Account
Materials Inventory
Work in Process Inventory
Finished Goods Inventory
Account Balances
Jan. 31
$2,700
50% of materials inventory on Jan. 31
$12,600
3 times the direct labor incurred
$28,700
70% of Cost of Goods Manufactured
$9,000 less than Cost of Goods Sold
27,000
Feb. 28
Costs Incurred
Direct Materials Used
Direct Labor Incurred
16,500 Factory Overhead Incurred
Cost of Goods Sold
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