Question
Accounting records for Antoinette Designs (AD) for November show the following (each entry is the total of the actual entries for the account for
Accounting records for Antoinette Designs (AD) for November show the following (each entry is the total of the actual entries for the account for the month): Account Titles Debit Credit Work-in-Process Inventory (Direct Labor) 7,360 Wages Payable 7,360 Direct Materials Inventory 122,530 Finished Goods Inventory Accounts Payable Work-in-Process Inventory Cost of Goods Sold 122,530 137,200 137,200 135,020 Finished Goods Inventory 135,020 "This entry does not include any over- or underapplied overhead. Over- or underapplied overhead is written off to Cost of Goods Sold once for the month. For November, the amount written off was 5 percent of overhead applied for November. Overhead is applied on the basis of direct labor costs. The Work-in-Process Inventory ending account balance on November 30 was 125 percent of the beginning balance. The Direct Materials Inventory ending balance on November 30 was $2,650 less than the beginning balance. The Finished Goods Inventory beginning balance on November 1 was $15,720. The September income statement shows revenues of $211,000 and a gross profit of $76,900. Required: a. What was the finished goods inventory balance on November 30? b. How much manufacturing overhead was applied for November? c. What was the manufacturing overhead rate for November? d. How much manufacturing overhead was incurred for November? e. What was the Work-in-Process Inventory on November 1? f. What was the Work-in-Process Inventory on November 30?
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