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Costs and Balances

At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he$$s collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured.

Data for February

Decrease in materials inventory $$3,600$

Materials inventory on Feb. $2850\%$ of materials inventory on Jan. $31$

Direct materials purchased $$12,600$

Direct materials used $3$ times the direct labor incurred

Total manufacturing costs incurred in period $$27,300$

Total manufacturing costs incurred in period $70\%$ of Cost of Goods Manufactured

Total manufacturing costs incurred in period $$8,000$ less than Cost of Goods Sold

Account Balances

Account Jan. $31$ Feb. $28$ Costs Incurred

Materials Inventory $fill in the blank $9$ebc$40$f$9004$dfbf$\_1$

$fill in the blank $9$ebc$40$f$9004$dfbf$\_2$

Direct Materials Used $fill in the blank $9$ebc$40$f$9004$dfbf$\_3$

Work in Process Inventory $27,000$ fill in the blank $9$ebc$40$f$9004$dfbf$\_4$

Direct Labor Incurred fill in the blank $9$ebc$40$f$9004$dfbf$\_5$

Finished Goods Inventory fill in the blank $9$ebc$40$f$9004$dfbf$\_6$

$17,000$ Factory Overhead Incurred fill in the blank $9$ebc$40$f$9004$dfbf$\_7$

Cost of Goods Sold fill in the blank $9$ebc$40$f$9004$dfbf$\_8$

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