April 18, 2014

Homework Help: accounting

Posted by alexis on Tuesday, January 22, 2013 at 9:19pm.

The Bags and Luggage Company had the following account balances as of 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 $49,000 for 1,800 hours worked.
2. Direct materials costing $28,000 and indirect materials costing $5,000 were purchased.
3. Sales commissions of $15,000 were earned by the sales force.
4. $22,000 worth of direct materials were used in production.
5. Advertising costs of $6,300 were incurred.
6. Factory supervisors earned salaries of $12,046.
7. Indirect labor costs for the month were $3,000.
8. Monthly depreciation on factory equipment was $4,500.
9. Utilities expense of $7,061 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 $96,743 were sold for $175,897.

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?

Direct materials inventory $
Work in process inventory $
Finished goods inventory $

As of January 31, what will be the balance in the Manufacturing Overhead account?

What was Bags and Luggage's operating income for January?

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