Question
The Ryde and Rowe Inc. had the following account balances as of January 1: EXERCISE 16.6 Flow of Costs through Manufacturing Accounts LO16-3 through LO16-5
The Ryde and Rowe Inc. had the following account balances as of January 1: EXERCISE 16.6 Flow of Costs through Manufacturing Accounts LO16-3 through LO16-5 Direct Materials Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 89,200 Work in Process Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178,400 Finished Goods Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253,600 Manufacturing Overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 During the month of January, all of the following occurred: 1. Direct labor costs were $442,000 for 18,000 hours worked. 2. Direct materials costing $335,750 and indirect materials costing $13,500 were purchased. 3. Sales commissions of $216,500 were earned by the sales force. 4. $326,000 worth of direct materials were used in production. 5. Advertising costs of $36,300 were incurred. 6. Factory supervisors earned salaries of $22,000. 7. Indirect labor costs for the month were $23,000. 8. Monthly depreciation on factory equipment was $24,500.
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