Answer:
Cardinals, Inc.
a) Cost of direct materials issued to production during November = $54,000.
b) Total manufacturing overhead applied during November = $72,000.
c) Cost of products completed during November = $180,000
d) Ending balance of WIP = $96,000
e) Underapplied manufacturing overhead = $6,000
f) Operating profit (loss) for November:
Sales Revenue $270,000
Cost of goods sold 140,000
Underapplied overhead 6,000 (146,000)
Operating profit $124,000
Explanation:
a) Data and Calculations:
1. Materials Inventory
Beginning balance 11/1 $30,000
Purchases 120,000
less ending balance 96,000
Transfer to WIP $54,000
2. Work-In-Process Inventory
Beginning balance 11/1 $60,000
Labor 90,000
Materials 54,000
Manufacturing overhead 72,000
Less Finished Goods (180,000)
Ending WIP 96,000
3. Finished Goods Inventory
Beginning balance 11/1 $80,000
WIP 180,000
Ending balance (120,000)
Cost of goods sold 140,000
4. Manufacturing Overhead Control $78,000
Manufacturing overhead applied 72,000
Under-applied overhead $6,000
5. Labor hours = $90,000/$30 = 3,000 hours
6. Manufacturing overhead applied = $24 * 3,000 = $72,000