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.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 15E: Costs per equivalent unit and production costs Based on the data in Exercise 17-14, determine the...
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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:

  1. What was the cost of direct materials issued to production during August?

  2. What was the over- or underapplied manufacturing overhead for August?

  3. What was the manufacturing overhead application rate in August?

  4. What was the cost of products completed during August?

  5. What was the balance of the Work-in-Process Inventory account at the end of August?

  6. What was the operating profit for August? Any over- or underapplied overhead is written off to Cost of Goods Sold.

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