Question
On July 1, Tin Hau Company?s Work in Process Inventory account showed a beginning balance of $9,000. The Materials Inventory account showed a beginning balance
On July 1, Tin Hau Company?s Work in Process Inventory account showed a beginning balance of $9,000. The Materials Inventory account showed a beginning balance of $40,000. Production activity for July was as follows:
(a) Direct materials costing $28,800 were requested for production;
(b) Total production-related payroll was $10,600, of which $2,600 was used to pay for indirect labor;
(c) Indirect materials costing $8,400 were purchased and used;
(d) Overhead was applied at a rate of 120 percent of direct labor costs.
1. Record Tin Hau?s materials, labor, and overhead costs for July in T accounts.
2. Compute the ending balance in the Work in Process Inventory account. Assume a transfer of $45,000 to the Finished Goods Inventory account during the period.
Work in Process Inventory: T Account Analysis ESA. On July 1, Tin Hau Company's Work in Process Inventory account showed a beginning balance of $9,000. The Materials Inventory account showed a beginning balance of $40,000. Production activity for July was as follows: (a) Direct materials costing $28,800 were requested for production; (b) total production-related payroll was $10,600, of which $2,600 was used to pay for indirect labor; (c) indirect materials costing $8,400 were purchased and used; and (d) overhead was applied at a rate of 120 percent of direct labor costs. 1. Record Tin I-Iau's materials, labor, and overhead costs for July in T accounts. 2. Compute the ending balance in the Work in Process Inventory account. Assume a transfer of $45,000 to the Finished Goods Inventory account during the periodStep by Step Solution
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