Partially completed T-accounts and additional information for Dumfries Designs for the month of August follow:Materials InventoryDebitCreditBB (8/1)165,200 682,200610,200 Work-in-Process InventoryDebitCreditBB (8/1)307,200 Labor597,400 Finished Goods InventoryDebitCreditBB (8/1)589,200 960,800777,700 Cost of Goods SoldDebitCredit Manufacturing Overhead ControlDebitCredit 482,920 Applied Manufacturing OverheadDebitCredit 473,800 Additional information for August follows:The labor wage rate was $29 per hour.During the month, sales revenue was $1,732,000, and selling and administrative costs were $324,800.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. Partially completed T-accounts and additional Information for Dumfries Designs for the month of August follow:Work-in-Process InventoryFinished Goods InventoryCreditDebitCreditMaterials InventoryDebitBB (8/1)Credit165,200682, 200 610, 200Cost of Goods SoldDebitCreditDebitBB (8/1)307,200Labor 597,400Manufacturing Overhead ControlDebitCredit482,920BB (8/1)589, 200960,800777,700Applied Manufacturing OverheadDebitCreditAdditional Information for August follows:• The labor wage rate was $29 per hour.During the month, sales revenue was $1,732,000, and selling and administrative costs were $324,800.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?473,800c. 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.

The direct costs are debited to work in process account. The indirect Costs are debited to…

Partially completed T-accounts and additional information for Dumfries Designs for the month of August follow: Materials Inventory Debit Credit BB (8/1) 165,200 682,200 610,200 Work-in-Process Inventory Debit Credit BB (8/1) 307,200 Labor 597,400 Finished Goods Inventory Debit Credit BB (8/1) 589,200 960,800 777,700 Cost of Goods Sold Debit Credit Manufacturing Overhead Control Debit Credit 482,920 Applied Manufacturing Overhead Debit Credit 473,800 Additional information for August follows: The labor wage rate was $29 per hour. During the month, sales revenue was $1,732,000, and selling and administrative costs were $324,800. 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 Co

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 14PA: Loanstar had 100 units in beginning inventory before starting 950 units and completing 800 units....

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Materials Inventory
Debit	Credit
BB (8/1)	165,200
	682,200	610,200

Work-in-Process Inventory
Debit	Credit
BB (8/1)	307,200
Labor	597,400

Finished Goods Inventory
Debit	Credit
BB (8/1)	589,200
	960,800	777,700

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.

Partially completed T-accounts and additional Information for Dumfries Designs for the month of August follow:
Work-in-Process Inventory
Finished Goods Inventory
Credit
Debit
Credit
Materials Inventory
Debit
BB (8/1)
Credit
165,200
682, 200 610, 200
Cost of Goods Sold
Debit
Credit
Debit
BB (8/1)
307,200
Labor 597,400
Manufacturing Overhead Control
Debit
Credit
482,920
BB (8/1)
589, 200
960,800
777,700
Applied Manufacturing Overhead
Debit
Credit
Additional Information for August follows:
• The labor wage rate was $29 per hour.
During the month, sales revenue was $1,732,000, and selling and administrative costs were $324,800.
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?
473,800
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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