Maurice Tutor

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Category > Accounting Posted 17 Aug 2017 My Price 6.00

Tin Hau Company

Work in Process Inventory: t Account Analysis

e5A. On July 1, Tin Hau Company’s Work in Process Inventory account showed a beginning balance of $9,000. The Materials Inventory account showed a beginning balance of $40,000. Production activity for July was as follows: (a) Direct materials costing $28,800 were requested for production; (b) total production-related payroll was $10,600, of which $2,600 was used to pay for indirect labor; (c) indirect materials costing $8,400 were purchased and used; and (d) overhead was applied at a rate of 120 percent of direct labor costs.

1.    Record Tin Hau’s materials, labor, and overhead costs for July in T accounts.

2.    Compute the ending balance in the Work in Process Inventory account. Assume a transfer of $45,000 to the Finished Goods Inventory account during the period.

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Maurice Tutor
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Status NEW Posted 17 Aug 2017 12:08 AM My Price 6.00

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