Dorothy's Holiday Styles has been busy in the month of November! It seems Dorothy's marketing efforts have paid of as she has answered many calls to help decorate homes for the upcoming holidays. The company carries an inventory of decorative items in its store and then installs them in creative and fun ways. The MOH costs are fairly low, since the company has just a small space to hold the inventory. The applied MOH rate is $10 per direct labor hour. As of November 30, the company carries the following balances in its inventory accounts. DM Inventory WIP Inventory FG Inventory 1. During December, the following events occurred. 2. 3. 4. 5. 6. $6,500 8,250 7. 8. 0 Purchased direct materials costing $15,000 on account. Used $19,600 of direct materials for jobs. Paid direct labor wages for 130 hours of labor ($25/hr). Applied MOH cost to jobs. Actually incurred $2,400 in MOH costs. Completed all jobs by the end of the month. Billed clients $44,000 for jobs completed. Closed under-or overapplied MOH using the direct write-off method.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Dorothy's Holiday Styles has been busy in the month of November! It seems Dorothy's marketing efforts have paid off,
as she has answered many calls to help decorate homes for the upcoming holidays. The company carries an inventory
of decorative items in its store and then installs them in creative and fun ways. The MOH costs are fairly low, since the
company has just a small space to hold the inventory. The applied MOH rate is $10 per direct labor hour.
As of November 30, the company carries the following balances in its inventory accounts.
DM Inventory
WIP Inventory
FG Inventory
1.
During December, the following events occurred.
2.
3.
4.
5.
6.
7.
$6,500
8,250
8.
0
Purchased direct materials costing $15,000 on account.
Used $19,600 of direct materials for jobs.
Paid direct labor wages for 130 hours of labor ($25/hr).
Applied MOH cost to jobs.
Actually incurred $2,400 in MOH costs.
Completed all jobs by the end of the month.
Billed clients $44,000 for jobs completed.
Closed under-or overapplied MOH using the direct write-off method.
Transcribed Image Text:Dorothy's Holiday Styles has been busy in the month of November! It seems Dorothy's marketing efforts have paid off, as she has answered many calls to help decorate homes for the upcoming holidays. The company carries an inventory of decorative items in its store and then installs them in creative and fun ways. The MOH costs are fairly low, since the company has just a small space to hold the inventory. The applied MOH rate is $10 per direct labor hour. As of November 30, the company carries the following balances in its inventory accounts. DM Inventory WIP Inventory FG Inventory 1. During December, the following events occurred. 2. 3. 4. 5. 6. 7. $6,500 8,250 8. 0 Purchased direct materials costing $15,000 on account. Used $19,600 of direct materials for jobs. Paid direct labor wages for 130 hours of labor ($25/hr). Applied MOH cost to jobs. Actually incurred $2,400 in MOH costs. Completed all jobs by the end of the month. Billed clients $44,000 for jobs completed. Closed under-or overapplied MOH using the direct write-off method.
x Your answer is incorrect.
Determine the company's total cost of goods completed and COGS in December.
Total cost of goods completed and COGS
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Save for Later
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Transcribed Image Text:x Your answer is incorrect. Determine the company's total cost of goods completed and COGS in December. Total cost of goods completed and COGS eTextbook and Media Save for Later 2200
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