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Partially completed T-accounts and additional information for Dumfries Designs for the month of August follow: Materials Inventory Work-in-Process Inventory Debit BB (8/1) 165,000 682,000
Partially completed T-accounts and additional information for Dumfries Designs for the month of August follow: Materials Inventory Work-in-Process Inventory Debit BB (8/1) 165,000 682,000 Credit Debit Credit 610,000 BB (8/1) 307,000 Labor 576,800 Cost of Goods Sold Debit Credit Manufacturing Overhead Control Debit Credit Finished Goods Inventory Debit Credit BB (8/1) 589,000 960,000 Applied Manufacturing Overhead Debit 777,500 Credit 462,300 453,200 Additional information for August follows: The labor wage rate was $28 per hour. During the month, sales revenue was $1,730,000, and selling and administrative costs were $324,600. This company has no indirect materials or supplies. The company applies manufacturing overhead on the basis of direct labor-hours. Required: a. What was the cost of direct materials issued to production during August? b. What was the over- or underapplied manufacturing overhead for August? c. What was the manufacturing overhead application rate in August? d. What was the cost of products completed during August? e. What was the balance of the Work-in-Process Inventory account at the end of August? f. What was the operating profit for August? Any over- or underapplied overhead is written off to Cost of Goods Sold.
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