Partially completed T-accounts and additional information for Dumfries Designs for the month of August follow: Materials Inventory Debit Credit BB (8/1) 166,800 683,800 611,800 Work-in-Process Inventory Debit Credit BB (8/1) 308,800 Labor 762,200 Finished Goods Inventory Debit Credit BB (8/1) 590,800 967,200 779,300 Cost of Goods Sold Debit Credit Manufacturing Overhead Control Debit Credit 647,880 Applied Manufacturing Overhead Debit Credit 638,600 Additional information for August follows: The labor wage rate was $37 per hour. During the month, sales revenue was $1,748,000, and selling and administrative costs were $326,400. 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.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 15E: Costs per equivalent unit and production costs Based on the data in Exercise 17-14, determine the...

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Materials Inventory
Debit	Credit
BB (8/1)	166,800
	683,800	611,800

Work-in-Process Inventory
Debit	Credit
BB (8/1)	308,800
Labor	762,200

Finished Goods Inventory
Debit	Credit
BB (8/1)	590,800
	967,200	779,300

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.

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