Partially completed T-accounts and additional information for Dumfries Designs for the month of August follow: Materials Inventory Debit Credit BB (8/1) 166,800 683,800 611,800 Work-in-Process Inventory Debit Credit BB (8/1) 308,800 Labor 762,200 Finished Goods Inventory Debit Credit BB (8/1) 590,800 967,200 779,300 Cost of Goods Sold Debit Credit Manufacturing Overhead Control Debit Credit 647,880 Applied Manufacturing Overhead Debit Credit 638,600 Additional information for August follows: The labor wage rate was $37 per hour. During the month, sales revenue was $1,748,000, and selling and administrative costs were $326,400. This company has no indirect materials or supplies. The company applies manufacturing overhead on the basis of direct labor-hours. Required: What was the cost of direct materials issued to production during August? What was the over- or underapplied manufacturing overhead for August? What was the manufacturing overhead application rate in August ?What was the cost of products completed during August? What was the balance of the Work-in-Process Inventory account at the end of August? What was the operating profit for August? Any over- or underapplied overhead is written off to Cost of Goods Sold.
Partially completed T-accounts and additional information for Dumfries Designs for the month of August follow: Materials Inventory Debit Credit BB (8/1) 166,800 683,800 611,800 Work-in-Process Inventory Debit Credit BB (8/1) 308,800 Labor 762,200 Finished Goods Inventory Debit Credit BB (8/1) 590,800 967,200 779,300 Cost of Goods Sold Debit Credit Manufacturing Overhead Control Debit Credit 647,880 Applied Manufacturing Overhead Debit Credit 638,600 Additional information for August follows: The labor wage rate was $37 per hour. During the month, sales revenue was $1,748,000, and selling and administrative costs were $326,400. This company has no indirect materials or supplies. The company applies manufacturing overhead on the basis of direct labor-hours. Required: What was the cost of direct materials issued to production during August? What was the over- or underapplied manufacturing overhead for August? What was the manufacturing overhead application rate in August ?What was the cost of products completed during August? What was the balance of the Work-in-Process Inventory account at the end of August? What was the operating profit for August? Any over- or underapplied overhead is written off to Cost of Goods Sold.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Partially completed T-accounts and additional information for Dumfries Designs for the month of August follow:
| Materials Inventory | |||
|---|---|---|---|
| Debit | Credit | ||
| BB (8/1) | 166,800 | ||
| 683,800 | 611,800 |
| Work-in-Process Inventory | |||
|---|---|---|---|
| Debit | Credit | ||
| BB (8/1) | 308,800 | ||
| Labor | 762,200 |
| Finished Goods Inventory | |||
|---|---|---|---|
| Debit | Credit | ||
| BB (8/1) | 590,800 | ||
| 967,200 | 779,300 |
| Cost of Goods Sold | |||
|---|---|---|---|
| Debit | Credit | ||
| Manufacturing |
|||
|---|---|---|---|
| Debit | Credit | ||
| 647,880 | |||
| Applied Manufacturing Overhead | |||
|---|---|---|---|
| Debit | Credit | ||
| 638,600 | |||
Additional information for August follows:
- The labor wage rate was $37 per hour.
- During the month, sales revenue was $1,748,000, and selling and administrative costs were $326,400.
- This company has no indirect materials or supplies.
- The company applies manufacturing overhead on the basis of direct labor-hours.
Required:
-
What was the cost of direct materials issued to production during August? What was the over- or underapplied manufacturing overhead for August?
-
What was the manufacturing overhead application rate in August ?What was the cost of products completed during August?
-
What was the balance of the Work-in-Process Inventory account at the end of August? What was the operating profit for August? Any over- or underapplied overhead is written off to Cost of Goods Sold.
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