Question
The Ryde and Rowe Inc. had the following account balances as of January 1: Direct Materials Inventory...$8700 Work in process inventory...$76500 Finished Goods Inventory...$53000 Manufacturing
The Ryde and Rowe Inc. had the following account balances as of January 1:
Direct Materials Inventory...$8700
Work in process inventory...$76500
Finished Goods Inventory...$53000
Manufacturing Overhead...$0
During the month of January, all of the following occurred: |
1. | Direct labor costs were $42,000 for 1,800 hours worked. | ||||||
2. | Direct materials costing $28,000 and indirect materials costing $5,300 were purchased. | ||||||
3. | Sales commissions of $15,500 were earned by the sales force. | ||||||
4. | $25,000 worth of direct materials were used in production. | ||||||
5. | Advertising costs of $6,300 were incurred. | ||||||
6. | Factory supervisors earned salaries of $11,635. | ||||||
7. | Indirect labor costs for the month were $3,000. | ||||||
8. | Monthly depreciation on factory equipment was $4,500. | ||||||
9. | Utilities expense of $7,031 was incurred in the factory. | ||||||
10. | Equipment with manufacturing costs of $69,000 were transferred to finished goods. | ||||||
11. | Monthly insurance costs for the factory were $4,200. | ||||||
12. | $5,000 in property taxes on the factory were incurred and paid. | ||||||
13. Equipment with manufacturing costs of $93,201 were sold for $169,456.
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