Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 and month end. The company applies manufacturing overhead at a rate of $11 per direct labor hour. Direct labor wages average $12 per hour. The following additional cost information is available for August. Level 1 has direct materials of $1,200 and direct labor of $1,800. Level 2 has direct materials of $8,000 and direct labor of $,4800. Level 3 has direct materials of $2,100 and direct labor of $360. Level 4 has direct materials of $3,000 and direct labor of $1,200. The sales staff is paid a 2% commission on all sales for the period. The company doses our 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. 1) What is the amount of MOH applied to all jobs in process during August? 2) What is the adjusted COGS reported on the income statement for August? 3) What is the gross profit reported on the income statement for August? 4) What is the ending work inprocess balance reported on the balance sheet for August?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Outsourced Functions Risk Management In An Outsourced World

Authors: Mark Salamasick

1st Edition

0894137255, 9780894137259

More Books

Students also viewed these Accounting questions