| The Bags and Luggage Company had the following account balances as of January 1: |
| Direct Materials Inventory | $ | 8,700 | ||
| Work in Process Inventory | 76,500 | |||
| Finished Goods Inventory | 53,000 | |||
| Manufacturing Overhead | 0 | |||
|
|
||||
| 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 $34,400, what will be the balances in the Direct Materials, Work in Process, and Finished Goods Inventory accounts at the end of January?(Input all amounts as positive values. Omit the “$” 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 “$” 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 “$” sign in your response.) |
| Operating income | $ |