Dorothy's Holiday Styles has been busy in the month of November! It seems Dorothy's marketing efforts have paid of as she has answered many calls to help decorate homes for the upcoming holidays. The company carries an inventory of decorative items in its store and then installs them in creative and fun ways. The MOH costs are fairly low, since the company has just a small space to hold the inventory. The applied MOH rate is $10 per direct labor hour. As of November 30, the company carries the following balances in its inventory accounts. DM Inventory WIP Inventory FG Inventory 1. During December, the following events occurred. 2. 3. 4. 5. 6. $6,500 8,250 7. 8. 0 Purchased direct materials costing $15,000 on account. Used $19,600 of direct materials for jobs. Paid direct labor wages for 130 hours of labor ($25/hr). Applied MOH cost to jobs. Actually incurred $2,400 in MOH costs. Completed all jobs by the end of the month. Billed clients $44,000 for jobs completed. Closed under-or overapplied MOH using the direct write-off method.

Dorothy's Holiday Styles has been busy in the month of November! It seems Dorothy's marketing efforts have paid of as she has answered many calls to help decorate homes for the upcoming holidays. The company carries an inventory of decorative items in its store and then installs them in creative and fun ways. The MOH costs are fairly low, since the company has just a small space to hold the inventory. The applied MOH rate is $10 per direct labor hour. As of November 30, the company carries the following balances in its inventory accounts. DM Inventory WIP Inventory FG Inventory 1. During December, the following events occurred. 2. 3. 4. 5. 6. $6,500 8,250 7. 8. 0 Purchased direct materials costing $15,000 on account. Used $19,600 of direct materials for jobs. Paid direct labor wages for 130 hours of labor ($25/hr). Applied MOH cost to jobs. Actually incurred $2,400 in MOH costs. Completed all jobs by the end of the month. Billed clients $44,000 for jobs completed. Closed under-or overapplied MOH using the direct write-off method.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 1CE: Ventana Window and Wall Treatments Company provides draperies, shades, and various window...

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Michelle’s Holiday Styles has been busy in the month of November! It seems Michelle’s marketing efforts have paid off, as she has answered many calls to help decorate homes for the upcoming holidays. The company carries an inventory of decorative items in its store and then installs them in creative and fun ways. The MOH costs are fairly low, since the company has just a small space to hold the inventory. The applied MOH rate is $10 per direct labor hour.As of November 30, the company carries the following balances in its inventory accounts. DM Inventory $7,600 WIP Inventory 9,350 FG Inventory 0 During December, the following events occurred. 1. Purchased direct materials costing $16,100 on account. 2. Used $20,700 of direct materials for jobs. 3. Paid direct labor wages for 141 hours of labor ($25/hr). 4. Applied MOH cost to jobs. 5. Actually incurred $3,500 in MOH costs. 6. Completed all jobs by the end of the month. 7. Billed clients…
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Determine the company's total cost of goods completed and COGS in December. Total cost of goods completed and COGS 69 eTextbook and Media Save for Later Attempts: 0 of 2 used Submit Answer (d1) How much gross margin did the company earn in December? (Round percentage answer to 2 decimal places, e.g. 52.75%.) Gross margin Gross margin percentage $ % If Betty had a goal of earning a 35% gross margin, did she reach her goal? .she eTextbook and Media Save for Later ✓ reach her goal, because % is than her goal of 35%. Attempts: 0 of 2 used Submit Answer
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