Partially completed T-accounts and additional information for Dumfries Designs for the month of August follow: Materials Inventory Debit Credit BB (8/1) 166,600 683,600 611,600 Work-in-Process Inventory Debit Credit BB (8/1) 308,600 Labor 741,600 Finished Goods Inventory Debit Credit BB (8/1) 590,600 966,400 779,100 Cost of Goods Sold Debit Credit Manufacturing Overhead Control Debit Credit 627,260 Applied Manufacturing Overhead Debit Credit 618,000 Additional information for August follows: The labor wage rate was $36 per hour. During the month, sales revenue was $1,746,000, and selling and administrative costs were $326,200. This company has no indirect materials or supplies. The company applies manufacturing overhead on the basis of direct labor-hours. Questions: 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.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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.