The Bags and Luggage Company had the following account balances as of January 1:
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| Direct Materials Inventory |
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$ |
8,700 |
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| Work in Process Inventory |
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76,500 |
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| Finished Goods Inventory |
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53,000 |
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| Manufacturing Overhead |
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- 0 - |
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During the month of January, all of the following occurred:
1. Direct labor costs were $40,000 for 1,800 hours worked.
2. Direct materials costing $28,000 and indirect materials costing $4,900 were purchased.
3. Sales commissions of $16,000 were earned by the sales force.
4. $22,000 worth of direct materials were used in production.
5. Advertising costs of $6,300 were incurred.
6. Factory supervisors earned salaries of $12,277.
7. Indirect labor costs for the month were $3,000.
8. Monthly depreciation on factory equipment was $4,500.
9. Utilities expense of $6,977 was incurred in the factory.
10. Luggage with manufacturing costs of $69,000 were transferred to finished goods.
11. Monthly insurance costs for the factory were $4,200.
12. $5,000 in property taxes on the factory were incurred and paid.
13. Luggage with manufacturing costs of $90,604 were sold for $164,734.
a. 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 "tiny_mce_markerquot; sign in your response.)
Direct materials inventory $
Work in process inventory $
Finished goods inventory $
b. As of January 31, what will be the balance in the Manufacturing Overhead account? (Input all amounts as positive values. Omit the "tiny_mce_markerquot; sign in your response.)
Manufacturing overhead $
c. What was Bags and Luggage's operating income for January? (Input all amounts as positive values.Omit the "tiny_mce_markerquot; sign in your response.)
Operating income $