Question
Flounder corporation was starting a new style of jacket and was monitoring the cost of its first production run of these items during the month.
Flounder corporation was starting a new style of jacket and was monitoring the cost of its first production run of these items during the month. The costs and transactions associated with this jacket were as follows.
1. Purchased fabric on account at a cost of $520.
2. Transferred $455 of fabric into production.
3. Accrued DL cost of $320 associated with 10 DL hours.
4. Recorded actual MOH costs of $295 (consisting of accrued liabilities of $165 and factory-related depreciation of $130).
5. Applied MOH costs using a budgeted MOH rate of $15 per DL hour.
6. Recognized cost of goods completed of $570.
Assuming there were no beginning balances in any of the inventory accounts at Flounder, show how the above transactions would be reflected in the following select accounts: DM Inventory, WIP Inventory, FG Inventory, and MOH Control.
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