The Duggart Company had the following transactions and events during its first year of operations.Estimated overhead for the year was $770,000;estimated direct labor cost for the year was $350,000.
a.Purchased materials on account,$567,000.
b.Requisitioned materials for production as follows: direct materials - 85 percent of purchases,indirect materials - 12 percent of purchases.
c.Direct labor for production is $331,000,indirect labor is $125,000.
d.Overhead incurred (not including materials or labor): $529,000.
e.Overhead is applied to production based on direct labor cost at the rate of ___ .
f.Goods costing $976,000 were completed during the period.
g.Goods costing $513,200 were sold on account for $776,000.
Required:
Determine the ending balances for:
(a)Materials inventory
(b)Work-in-process inventory
(c)Finished goods inventory

Question

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The Answer of The Duggart Company had the following transactions and events during its first year of operations.Estimated overhead for the year was $770,000;estimated direct labor cost for the year was $350,000.
a.Purchased materials on account,$567,000.
b.Requisitioned materials for production as follows: direct materials - 85 percent of purchases,indirect materials - 12 percent of purchases.
c.Direct labor for production is $331,000,indirect labor is $125,000.
d.Overhead incurred (not including materials or labor): $529,000.
e.Overhead is applied to production based on direct labor cost at the rate of ___ .
f.Goods costing $976,000 were completed during the period.
g.Goods costing $513,200 were sold on account for $776,000.
Required:
Determine the ending balances for:
(a)Materials inventory
(b)Work-in-process inventory
(c)Finished goods inventory

The Duggart Company Had the Following Transactions and Events During