Question
Partially completed T-accounts and additional information for Dumfries Designs for the month of August follow: Materials Inventory Debit Credit BB (8/1) 167,000 684,000 612,000 Work-in-Process
Partially completed T-accounts and additional information for Dumfries Designs for the month of August follow:
Materials Inventory | ||||
---|---|---|---|---|
Debit | Credit | |||
BB (8/1) | 167,000 | |||
684,000 | 612,000 |
Work-in-Process Inventory | ||||
---|---|---|---|---|
Debit | Credit | |||
BB (8/1) | 309,000 | |||
Labor | 782,800 |
Finished Goods Inventory | ||||
---|---|---|---|---|
Debit | Credit | |||
BB (8/1) | 591,000 | |||
968,000 | 779,500 |
Cost of Goods Sold | ||||
---|---|---|---|---|
Debit | Credit | |||
Manufacturing Overhead Control | ||||
---|---|---|---|---|
Debit | Credit | |||
668,500 | ||||
Applied Manufacturing Overhead | ||||
---|---|---|---|---|
Debit | Credit | |||
659,200 | ||||
Additional information for August follows:
- The labor wage rate was $38 per hour.
- During the month, sales revenue was $1,750,000, and selling and administrative costs were $326,600.
- This company has no indirect materials or supplies.
- The company applies manufacturing overhead on the basis of direct labor-hours.
Required:
-
What was the cost of direct materials issued to production during August?
-
What was the over- or underapplied manufacturing overhead for August?
-
What was the manufacturing overhead application rate in August?
-
What was the cost of products completed during August?
-
What was the balance of the Work-in-Process Inventory account at the end of August?
-
What was the operating profit for August? Any over- or underapplied overhead is written off to Cost of Goods Sold.
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