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 data below 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	$3,300
Materials inventory on Feb. 28	50% of materials inventory on Jan. 31
Direct materials purchased	$12,600
Direct materials used	3 times the direct labor incurred
Total manufacturing costs incurred in period	$29,400
Total manufacturing costs incurred in period	70% of Cost of Goods Manufactured
Total manufacturing costs incurred in period	$7,000 less than Cost of Goods Sold

Account	Jan. 31	Feb. 28	Costs	Incurred
Materials Inventory	$	$	Direct Materials Used	$
Work in Progress Inventory	$27,000	$	Direct Labor Incurred	$
Finished Goods Inventory	$	$16,000	Factory Overhead Incurred	$
			Cost of Goods Sold	$36,400