Conundrum, Inc. manufactures puzzles. Due to a fire in the administrative offices, the accounting records for September of the current year were partially destroyed. You have been able to piece together the following information from the ledger.

Raw-Material Inventory

Accounts Payable

		40,000				12,100 Bal. 8/31
Bal. 9/30 45,000

Work-in-Process Inventory

Finished-Goods Inventory

Bal. 8/31 8,000

Bal. 8/31 35,000

Manufacturing Overhead

Cost of Goods Sold

60,000

Wages Payable

Sales Revenue

1,500 Bal 9/30

Accounts Receivable

Bal. 8/31 8,000

Upon examining various source documents and interviewing several employees, you were able to gather the following additional information.

a. Collections of accounts receivable during September amounted to $205,000.

b. Sales revenue in September was 120 percent of cost of goods sold. All sales are on account.

c. Overhead is applied using an annual predetermined overhead rate using direct-labor hours (based on practical capacity).

d. The budgeted overhead for the current year is $720,000.

e. Budgeted direct-labor cost for the current year is $960,000. The direct-labor rate is $20 per hour.

f. The accounts payable balance on September 30 was $1,000. Only purchases of raw material are credited to accounts payable. A payment of $81,000 was made on September 15.

g. Septembers cost of goods sold amounted to $181,000.

h. The September 30 balance in finished-goods inventory was $4,000.

i. Payments of $79,500 were made to direct-labor employees during September. The August 31 balance in the Wages Payable account was $1,000.

j. The actual manufacturing overhead for September was $60,000.

k. An analysis of the puzzles still in process on September 30 revealed that so far these items have required 500 hours of direct labor and $20,500 of direct material.

Required: Calculate the following amounts.

1. Sales revenue for September.

2. September 30 balance in accounts receivable.

3. Cost of raw material purchased during September.

4. September 30 balance in work-in-process inventory.

5. Direct labor added to work in process during September.

6. Applied overhead for September.

7. Cost of goods completed during September.

8. Raw material used during September.

9. August 31 balance in raw-material inventory.

10. Overapplied or underapplied overhead for September.

Complete the T-accounts with the help of the additional information given in the problem.

Raw Material Inventory
Bal 8/31
		40,000
Bal 9/30

Accounts Payable
Bal 8/31		12,100
Bal 9/30

Work in Process inventory
Bal 8/31	8000
Direct Material
Direct Labor
Overhead
Bal 9/30

Finished Goods Inventory
Bal 8/31	35000
Bal 9/30

Manufacturing Overhead
	60,000

Cost of Goods Sold

Wages Payable
Bal 8/31
Bal 9/30

Sales Revenue

Accounts Receivable
Bal 8/31	8000
Bal 9/30