Zelda Manufacturing organized in June and recorded the following transactions during its first month of operations. Purchased materials costing $800,000. Used direct materials in production costing $485,000. Applied direct labor costs of $500,000 to various jobs. Applied manufacturing overhead at a rate of $10 per direct labor hour. (Direct labor workers earn $20 per hour.) Incurred actual manufacturing overhead costs of $245,000 (credit “Various Accounts”). Transferred completed jobs costing $745,000 to finished goods. Sold completed jobs for $1,000,000 on account. The cost applied to the jobs sold totaled $615,000. Closed the Manufacturing Overhead account directly to Cost of Goods Sold on June 30 Determine the company’s inventory balances at the end of June

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Zelda Manufacturing organized in June and recorded the following transactions during its first month of operations. Purchased materials costing $800,000. Used direct materials in production costing $485,000. Applied direct labor costs of $500,000 to various jobs. Applied manufacturing overhead at a rate of $10 per direct labor hour. (Direct labor workers earn $20 per hour.) Incurred actual manufacturing overhead costs of $245,000 (credit “Various Accounts”). Transferred completed jobs costing $745,000 to finished goods. Sold completed jobs for $1,000,000 on account. The cost applied to the jobs sold totaled $615,000. Closed the Manufacturing Overhead account directly to Cost of Goods Sold on June 30 Determine the company’s inventory balances at the end of June.
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