Question
Angry Birds, Inc. designs and builds retaining walls for individual customers. On August 1, 2 jobs were in process: Level 1 with a beginning balance
Angry Birds, Inc. designs and builds retaining walls for individual customers. On August 1, 2 jobs were in process: Level 1 with a beginning balance of $12,000 and Level 2 with a beginning balance of $8,600. During August, Level 3 and Level 4 were started. Levels 1 and 2 were sold at cost plus 40% during August. All other jobs remained in process at month end.
The company applies manufacturing overhead at a rate of $9 per direct labor hour. Direct labor wages average $10 per hour. The following additional cost information is available for August:
Level 1 | Level 2 | Level 3 | Level 4 | |
Direct Materials | $1,200 | $8,000 | $2,100 | $3,000 |
Direct Labor | $1,800 | $4,800 | $360 | $1,200 |
The sales staff is paid a 2% commission on all sales for the period. The company closes out the total over/underapplied manufacturing overhead to Cost of Goods Sold at the end of each month. Calculate the following given actual MOH of $8,200 incurred during August.
The amount of MOH applied to all jobs in process during August equals $__________.
The adjusted COGS reported on the Income Statement for August equals $_________.
The gross profit reported on the Income Statement for August equals $__________.
The ending work in process balance reported on the Balance Sheet for August equals $_________.
Round final answers to the nearest dollar.
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