osts and Balances t 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 ou ome 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 account o 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 ne cost of materials used, total manufacturing cost incurred, and cost of goods manufactured. Data for February Decrease in materials inventory $3,000 Materials inventory on Feb. 28 50% of materials inventory on Jan. 31 Direct materials purchased $12,300 Direct materials used 3 times the direct labor incurred otal manufacturing costs incurred in period $28,000 otal manufacturing costs incurred in period 70% of Cost of Goods Manufactured otal manufacturing costs incurred in period $9,000 less than Cost of Goods Sold Account Balances Account Jan. 31 Feb. 28 Costs Incurred Materials Inventory $ Direct Materials Used Work in Process Inventory 21,000 Direct Labor Incurred Finished Goods Inventory 16,000 Factory Overhead Incurred Cost of Goods Sold
osts and Balances t 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 ou ome 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 account o 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 ne cost of materials used, total manufacturing cost incurred, and cost of goods manufactured. Data for February Decrease in materials inventory $3,000 Materials inventory on Feb. 28 50% of materials inventory on Jan. 31 Direct materials purchased $12,300 Direct materials used 3 times the direct labor incurred otal manufacturing costs incurred in period $28,000 otal manufacturing costs incurred in period 70% of Cost of Goods Manufactured otal manufacturing costs incurred in period $9,000 less than Cost of Goods Sold Account Balances Account Jan. 31 Feb. 28 Costs Incurred Materials Inventory $ Direct Materials Used Work in Process Inventory 21,000 Direct Labor Incurred Finished Goods Inventory 16,000 Factory Overhead Incurred Cost of Goods Sold
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
$3,000
Materials inventory on Feb. 28
50% of materials inventory on Jan. 31
Direct materials purchased
$12,300
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
$9,000 less than Cost of Goods Sold
Account Balances
Account
Jan. 31
Feb. 28
Costs Incurred
Materials Inventory
2$
Direct Materials Used
Work in Process Inventory
21,000
Direct Labor Incurred
Finished Goods Inventory
16,000 Factory Overhead Incurred
Cost of Goods Sold
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