ACCOUNTING
Polaski Inc. uses an actual cost, job order system. The following transactions are for August 2010. At the beginning of the month, Direct Material Inventory was $ 2,000, Work in Process Inventory was $ 10,500, and Finished Gods Inventory $ 6,500.
- Direct material purchases on account totaled $ 90,000.
- Direct labor cost for the period totaled $ 75,600 for 8,000 direct labor hours; these costs were paid in cash.
- Actual overhead costs were $ 82,000 and are applied on production.
- The ending inventory of Direct Material Inventory was $ 3,500.
- The ending inventory of Work in Process Inventory was $ 7,750.
- Goods costing $ 243,700 were sold for $ 350,400 cash
a. What was the actual OH rate per direct labor hour?
b. Journalize the preceding transactions.
c. Determine the ending balance in Finished Goods Inventory.
Click here for the SOLUTION
