Assume If Bags and Luggage assigns manufacturing overhead of $34,400, what will

Question

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.)

As of January 31, what will be the balance in the Manufacturing Overhead account? (Input all amounts as positive values. Omit the "$" sign in your response.)

What was Bags and Luggage's operating income for January? (Input all amounts as positive values.Omit the "$" sign in your response.)

Explanation / Answer

a. Direct materials inventory, Jan. 1 $8,700 Direct materials purchased 25,750 Less: Direct materials used in production (26,000) Direct materials inventory, Jan. 31 $8,450 Work in process inventory, Jan. 1 $76,500 Direct materials used 26,000 Direct labor used 42,000 Manufacturing overhead applied 32,400 Less: Finished goods transferred out (69,000) Work in process inventory, Jan. 31 $107,900 Finished goods inventory, Jan. 1 $53,000 Cost of finished goods transferred in 69,000 Less: Cost of goods sold (89,000) Finished goods inventory, Jan. 31 $33,000 b. Manufacturing overhead, Jan. 1 $0 Indirect materials purchased 3,500 Supervisor salaries 12,000 Indirect labor costs 3,000 Depreciation 4,500 Factory utilities 7,800 Factory insurance 4,200 Property taxes on factory 3,000 Less: Manufacturing overhead applied (32,400) Manufacturing overhead, Jan. 31 $5,600 ============================= c. Operating income for the month of January: Revenues $165,000 Cost of goods sold (89,000) Gross profit 76,000 Operating expenses: Sales commissions $16,500 Advertising expense 6,300 (22,800) Operating income $53,200

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