MANAGERIAL ACCOUNTING HANDOUT PROBLEM 4 Score Name Section Problem (10 points). Loganberry Custom Cabinets manufactures custom built cabinets that are installed in expensive custom built homes. During the month of February 20X6, the company had the attached information available concerning its operations. REQUIRED: (1) (2) (3) What is the balance in the company's work in process inventory account at the beginning of February? What is the balance in the company's work in process inventory account at the end of February? What amount for cost of goods sold would be reported on the company's income statement for February? What is the balance in the company's finished goods inventory account at the end of February? How much manufacturing overhead was applied to production during the month of February? (4) (5) LOGANBERRY CUSTOM CABINETS INFORMATION RELATING TO MANUFACTURING OPERATIONS FOR THE MONTH OF FEBRUARY 20X6 (a) The company estimated at the beginning of the year (January 1) that its manufacturing overhead would be $40,000, and direct labor cost was estimated to be $60,000 (6,000 hours) for 20X6. Manufacturing overhead is applied to jobs based upon direct labor costs. This rate will be used for the entire year. The company's beginning work in process inventory on February 1, not including manufacturing overhead, was as follows. All other inventories had zero balances on February 1. (b) LOGANBERRY CUSTOM CABINETS BEGINNING WORK IN PROCESS INVENTORY AMOUNTS FOR JOBS EXCLUDING MOH AT FEBRUARY 1, 20X6 Job 605 Job 606 Direct materials $ 1,000 $ 750 Direct labor 2,000 1,200 (c) Manufacturing costs incurred during the month of February were as follows. LOGANBERRY CUSTOM CABINETS MANUFACTURING COSTS INCURRED DURING MONTH OF FEBRUARY 20X6 Job 605 Job 606 Job 607 Direct materials $ 500 $ 2,300 1,100 $ 1,300 Direct labor 800 3,200 (d) Job 605 was completed and sold in February. Job 606 was completed in February but was not sold. Job 607 was not completed by the end of February