Dorothy's Holiday Styles has been busy in the month of November! It seems Dorothy's marketing efforts have paid of 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 WIP Inventory FG Inventory 1. During December, the following events occurred. 2. 3. 4. 5. 6. $6,500 8,250 7. 8. 0 Purchased direct materials costing $15,000 on account. Used $19,600 of direct materials for jobs. Paid direct labor wages for 130 hours of labor ($25/hr). Applied MOH cost to jobs. Actually incurred $2,400 in MOH costs. Completed all jobs by the end of the month. Billed clients $44,000 for jobs completed. Closed under-or overapplied MOH using the direct write-off method.
Dorothy's Holiday Styles has been busy in the month of November! It seems Dorothy's marketing efforts have paid of 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 WIP Inventory FG Inventory 1. During December, the following events occurred. 2. 3. 4. 5. 6. $6,500 8,250 7. 8. 0 Purchased direct materials costing $15,000 on account. Used $19,600 of direct materials for jobs. Paid direct labor wages for 130 hours of labor ($25/hr). Applied MOH cost to jobs. Actually incurred $2,400 in MOH costs. Completed all jobs by the end of the month. Billed clients $44,000 for jobs completed. Closed under-or overapplied MOH using the direct write-off method.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 1CE: Ventana Window and Wall Treatments Company provides draperies, shades, and various window...
Related questions
Question
Please help me with correct answer thanku
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning