Brown Company makes copper fire pits. Each job is unique in sizeand design. Brown has provided you with the following January 1,2011 account balances.
Raw Materials, 1/1/2021 $35,000
Work-in-process 1/1/2021 $80,000
Finished Goods 1/1/2021 $72,000
During 2011, the following transactions occurred:
1. Brown purchased raw materials for $125,000 on account.
2. Brown used $150,000 of raw materials in production. Ninetypercent were direct materials and 10 percent were indirectmaterials.
3. $72,000 of direct labor and $30,000 of indirect labor wasincurred and paid.
4. Other manufacturing overhead incurred and paid totaled$55,000.
5. Brown completed production on goods costing $275,000
6. Brown’s sales revenue was $520,000. All goods were sold onaccount.
7. Brown cost of goods sold was $330,000 before adjusting forover-/under-applied overhead.
8. Brown applies overhead at 150% of direct labor cost.
9. Brown collected $530,000 from customers and paid $140,000 tovendors.
10. Brown closes over-/under-applied overhead to Cost of GoodsSold.
Required:Provide the ending balance in:
1. Materials Inventory
2. Work-in-Process Inventory
3. Finished Goods Inventory
4. COGS prior to the disposition of under or over appliedoverhead
5. How much overhead was applied?
6. Was it under or over applied?
7. COGS after the disposition of under or over appliedoverhead.
