ACCT 200 Study Guide - Balance Sheet, Income Statement, Finished Good
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The Bags and Luggage Company had the following account balances asof January 1: |
Direct Materials Inventory | $ | 8,700 | ||
Work in Process Inventory | 76,500 | |||
Finished Goods Inventory | 53,000 | |||
Manufacturing Overhead | - 0 - | |||
During the month of January, all of the following occurred: |
1. | Direct labor costs were $41000 for 1,800 hoursworked. |
2. | Direct materials costing $29,000 and indirect materials costing$4,000 were purchased. |
3. | Sales commissions of $17,000 were earned by the sales force. |
4. | $23,000 worth of direct materials were used in production. |
5. | Advertising costs of $6,300 were incurred. |
6. | Factory supervisors earned salaries of $12,904. |
7. | Indirect labor costs for the month were $3,000. |
8. | Monthly depreciation on factory equipment was $4,500. |
9. | Utilities expense of $6226 was incurred in the factory. |
10. | Luggage with manufacturing costs of $69,000 were transferred tofinished goods. |
11. | Monthly insurance costs for the factory were $4,200. |
12. | $5,000 in property taxes on the factory were incurred andpaid. |
13. | Luggage with manufacturing costs of $89162 were sold for$162112 |
a. | Assume IfBags and Luggage assigns manufacturing overhead of $34,400, whatwill be the balances in the Direct Materials, Work in Process, andFinished Goods Inventory accounts at the end of January? |
Direct materials inventory | $ |
Work in process inventory | $ |
Finished goods inventory | $ |
b. | As of January31, what will be the balance in the Manufacturing Overheadaccount? |
Manufacturing overhead | $ |
c. | What was Bagsand Luggage's operating income for January? |
Operating income | $ |