Costs and BalancesAt the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he’s collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured.Data for February Decrease in materials inventory$3,300Materials inventory on Feb. 2850% of materials inventory on Jan. 31Direct materials purchased$12,000Direct materials used3 times the direct labor incurredTotal manufacturing costs incurred in period$29,400Total manufacturing costs incurred in period70% of Cost of Goods ManufacturedTotal manufacturing costs incurred in period$10,000 less than Cost of Goods Sold DrawDesignLayoutReferencesMailingsReviewViewHelpPicture FormatHomeInsert,-A A Aa A EEE EE TX CutCalibri (Body)11AaBbCcDc AaBbCcDcCopyBIU ab x, x A A EEEEE E -T NormalT No Spac..Format PainterFont,ParagraphClipboard42.3.1.王祥Account BalancesFeb. 28Costs IncurredAccountJan. 313,300 V Direct Materials Used$ 15,300Materials Inventory6,600 S27,00015,300 X Direct Labor Incurred5,100VNorkin Wook ventery12,300 X15.000 Factory Overhead Incorred6,900 XCost of Goods Seld24.300 Xㄇ

Solution: Factory overhead incurred = Total manufacturing costs incurred in period - Direct…

Answered: At the end of February, after the…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.18E

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Costs and Balances

At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he’s collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured.

Data for February
Decrease in materials inventory	$3,300
Materials inventory on Feb. 28	50% of materials inventory on Jan. 31
Direct materials purchased	$12,000
Direct materials used	3 times the direct labor incurred
Total manufacturing costs incurred in period	$29,400
Total manufacturing costs incurred in period	70% of Cost of Goods Manufactured
Total manufacturing costs incurred in period	$10,000 less than Cost of Goods Sold

Draw
Design
Layout
References
Mailings
Review
View
Help
Picture Format
Home
Insert,
-
A A Aa A EEE EE T
X Cut
Calibri (Body)
11
AaBbCcDc AaBbCcDc
Copy
BIU ab x, x A A EE
EEE E -
T Normal
T No Spac..
Format Painter
Font,
Paragraph
Clipboard
4
2.
3.
1.
王
祥
Account Balances
Feb. 28
Costs Incurred
Account
Jan. 31
3,300 V Direct Materials Used
$ 15,300
Materials Inventory
6,600 S
27,000
15,300 X Direct Labor Incurred
5,100
V
Norkin Wook ventery
12,300 X
15.000 Factory Overhead Incorred
6,900 X
Cost of Goods Seld
24.300 X
ㄇ

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