Question

Angry​ Birds, Inc. designs and builds retaining walls for individual customers. On August​ 1, 2 jobs were in​ process: Level 1 with a beginning balance of​ $12,000 and Level 2 with a beginning balance of​ $8,600. During​ August, Level 3 and Level 4 were started. Levels 1 and 2 were sold at cost plus 30% during August. All other jobs remained in process at month end. The company applies manufacturing overhead at a rate of ​$9 per direct labor hour. Direct labor wages average ​$10 per hour. The following additional cost information is available for​ August:

	Level 1	Level 2	Level 3	Level 4
Direct Materials	​$1,200	​$8,000	​$2,100	​$3,000
Direct Labor	​$1,800	​$4,800	​$360	​$1,200

The sales staff is paid a​ 2% commission on all sales for the period. The company closes out the total​ over/underapplied manufacturing overhead to Cost of Goods Sold at the end of each month. Calculate the following given actual MOH of​ $8,200 incurred during August.

The amount of MOH applied to all jobs in process during August equals $ ____.

The adjusted COGS reported on the Income Statement for August equals ​$_______.

The gross profit reported on the Income Statement for August equals ​$______.

The ending work in process balance reported on the Balance Sheet for August equals ​$____.

Round final answers to the nearest dollar.

Answer 1

Solution:-

Amount of MOH applied to all jobs in Level Level 2 Level 3 Level 4 Direct labor 1800 4800 direct labor 12 12 12 Direct Labor hours c-ab 150 400 30 100 overhead rate Applied esd 6504400 330 1100 Amount of MOH applied to all jobs in process-1650+4400+330-1100-7480 Adjusted COGS Jobs sold 1 and Cost of goods sold Cost of Level 1 and Level 2 Level | Level 12000 8600 Direct Materials 1200 8000 Used Direct labor Applied 1800 4800 1650 4400