Costs and Balances

At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data hes collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured.

Data for February
Decrease in materials inventory	$2,700
Materials inventory on Feb. 28	50% of materials inventory on Jan. 31
Direct materials purchased	$12,300
Direct materials used	3 times the direct labor incurred
Total manufacturing costs incurred in period	$28,000
Total manufacturing costs incurred in period	70% of Cost of Goods Manufactured
Total manufacturing costs incurred in period	$10,000 less than Cost of Goods Sold

	Account Balances
Account	Jan. 31	Feb. 28	Costs Incurred
Materials Inventory	$fill in the blank ef1fdffd201e011_1	$fill in the blank ef1fdffd201e011_2	Direct Materials Used	$fill in the blank ef1fdffd201e011_3
Work in Process Inventory	21,000	fill in the blank ef1fdffd201e011_4	Direct Labor Incurred	fill in the blank ef1fdffd201e011_5
Finished Goods Inventory	fill in the blank ef1fdffd201e011_6	17,000	Factory Overhead Incurred	fill in the blank ef1fdffd201e011_7
			Cost of Goods Sold	fill in the blank ef1fdffd201e011_8