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 o f$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 30%during August. All other jobs remained in process at month end.
The company applies manufacturing overhead at a rate of $11per direct labor hour. Direct labor wages average $12 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. Calculate the following given actual MOH of $8,200 incurred during August.
The gross profit reported on the Income Statement for August equals________.(enter commas where appropriate and round to nearest dollar i.e.1,000 not 1000.2)
The ending work in process balance reported on the Balance Sheet for August equals________. (enter commas where appropriate and round to nearest dollar i.e.1,000 not 1000.2)
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