of ts Boston connect ACCOUNTING Chapter 34 Homework Question

of ts Boston connect ACCOUNTING Chapter 3/4 Homework Question 4 (of 10) value: 10.00 points Exercise 7-24 Assigning Costs to Jobs (LO 7-2, 3) Partially completed T-accounts and additional information for Cardinals, Inc., for the month of November appea Fin Materials Inventory Work-In-Process Inventory BB (11/1) 30,000 120,000 BB (11/1) 60,000 Labor 90,000 96,000 Manufacturing Overhead Control Applied Manufacturing Overhead 78,000 Additional information for November follows: Labor wage rate was $30 per hour Manufacturing overhead is applied at $24 per direct labor-hour Manufacturing overhead is applied at $24 per direct labor-hour During the month, sales revenue was $270,000, and selling and administrative costs were $48,000. This company has no indirect materials or supplies Required a. What cost amount of direct materials was issued to production during November? Deectmaterialsrs 96,000] b. How much manufacturing overhead was applied to products during November?

Solution

a. The amountof direct materials issued to production = OB + Pur - CB = 30000 + 120000 -96000 = $54000

b.Manufacturing overhead applied = Total direct Labor cost * Manufacturing overhead rate / Labor rate = 90000 * 24 /30 = $72000