coral artwork ltd has supplied the following information to its new management accountant

     

Account Beginning Balances Ending Balances Raw Materials $21,000 $36,000 WIP $25,000 $53,600 Finished Goods $30,000 $64,000 1. Overhead is applied on the basis of $6 per direct labour hour (16,000 DL hours incurred). 2. Jobs sold during the period were sold for $500,000. The cost of goods sold during the month was $300,000. 3. Indirect materials worth $6,500 were issued to production during the month. Direct materials were purchased on credit. 4. Regular hourly rate is $10. A total of 7,500 labour hours were worked during normal working hours. Employees also worked an additional 500 hours of overtime during the month. Overtime is paid at a rate of 150% of the normal hourly rate. 5. Sundry manufacturing overhead costs incurred during the month were $75,000.