During the month of January, all of the following occurred: 1. Direct labor cost
ID: 2370406 • Letter: D
Question
During the month of January, all of the following occurred:1. Direct labor costs were $46,000 for 1,800 hours worked.
2. Direct materials costing $29,000 and indirect materials costing $4,500 were purchased.
3. Sales commissions of $17,000 were earned by the sales force.
4. $20,000 worth of direct materials were used in production.
5. Advertising costs of $6,300 were incurred.
6. Factory supervisors earned salaries of $11,155.
7. Indirect labor costs for the month were $3,000.
8. Monthly depreciation on factory equipment was $4,500.
9. Utilities expense of $5,609 was incurred in the factory.
10. Luggage with manufacturing costs of $69,000 were transferred to finished goods.
11. Monthly insurance costs for the factory were $4,200.
12. $5,000 in property taxes on the factory were incurred and paid.
13. Luggage with manufacturing costs of $94,178 were sold for $171,232.
Assume If Bags and Luggage assigns manufacturing overhead of $34,400, what will be the balances in the Direct Materials, Work in Process, and Finished Goods Inventory accounts at the end of January? (Input all amounts as positive values. Omit the "$" sign in your response.)
Direct materials inventory $ ___________
Work in process inventory $ ____________
Finished goods inventory $ ___________
Explanation / Answer
Any other questions, just RATE me and message back. Side note: I started analyzing the transactions in order from 1 to 13 and put them in the correct category accordingly. Direct Material inventory: 29,000 - 20,000 (moved to WIP) = 9,000 WIP inventory: direct labor 46,000+ overhead 2,000 + 20,000 (from Direct Materials) + overhead 11,155 + overhead 3,000 overhead 4,500 + overhead 5,609 - 69,000 (moved to finished goods) + overhead 4,200 + overhead 5,000 = 32,464 Finished Goods: 69,000 (from WIP) + overhead 34,400 - 94,178 = 9,222 Transactions not needed: 3, 5, Side Note: they are not needed because they have nothing to do with the factory process, hence not included in inventory.
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