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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please help me with correct answer thanku
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education