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Carol's Holiday Styles has been busy in the month of November! It seems Carol'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.

During December, the following events occurred.

Purchased direct materials costing $$15,800$ on account.

Used $$20,400$ of direct materials for jobs.

Paid direct labor wages for $138$ hours of labor $($ $$\frac{25}{h}r).$

Applied MOH cost to jobs.

Actually incurred $$3,200$ in MOH costs.

Completed all jobs by the end of the month.

Billed clients $$47,200$ for jobs completed.

Closed under$-$or overapplied MOH using the direct write$-$off method.

Calculate the ending balances in all inventory accounts as of December $31.$

Ending Balances

DM Inventory $

WIP Inventory $

FG Inventory $

Prepare the journal entry to write off any under$-$ or overapplied MOH directly to COGS. $($Credit account titles are automatically

indented when the amount is entered. Do not indent manually List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

Determine the company's total cost of goods completed and COGS in December.

Total cost of goods completed and COGS $

How much gross margin did the company earn in December? $($Round percentage answer to $2$ decimal places, e$.$g$.52\mathrm{.}75\%.)$

Gross margin

Gross margin percentage

If Carol had a goal of earning a $35\%$ gross margin, did she reach her goal?

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