Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Indigo Corporation was starting a new style of jacket and was monitoring the costs of its first production run of these items during the
Indigo Corporation was starting a new style of jacket and was monitoring the costs 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 $345. Transferred $280 of fabric into production. Accrued DL cost of $180 associated with 10 DL hours. Recorded actual MOH costs of $155 (consisting of accrued liabilities of $95 and factory-related depreciation of $60). Applied MOH costs using a budgeted MOH rate of $12 per DL hour. Recognized cost of goods completed of $430. 2. 3. 4. 5. 6. (a) Assuming there were no beginning balances in any of the inventory accounts at Indigo, show how the above transactions would be reflected in the following select accounts: DM Inventory, WIP Inventory, FG Inventory, and MOH Control. DM Inventory Assuming there were no beginning balances in any of the inventory accounts at Indigo, show how the above transactions would be reflected in the following select accounts: DM Inventory, WIP Inventory, FG Inventory, and MOH Control. Actual MOH Applied MOH DL cost DM used End balance Goods completed Purchases # DM Inventory WIP Inventory FG Inventory
Step by Step Solution
★★★★★
3.49 Rating (156 Votes )
There are 3 Steps involved in it
Step: 1
1 Purchased fabric on account DM Inventory Dr 345 Cr Accounts Payable 345 ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started