Chapter 17 Required Homework
award: 3 out of 3.00 points
Conklin Corporation recorded the following activities during its first month of operations:
Purchased materials costing $250,000.
Used direct materials in production costing $230,000.
Incurred direct labor costs of $300,000, of which $275,000 had actually been paid at the end
of the month.
Applied manufacturing overhead at a rate of $15 per direct labor hour. (Direct labor workers
earn $25 per hour.)
Incurred actual manufacturing overhead costs of $175,000.
Transferred completed jobs costing $520,000 to finished goods.
Sold completed jobs for $700,000. The cost applied to the jobs sold totaled $480,000.
Closed the Manufacturing Overhead account directly to Cost of Goods Sold at the end of the
Incurred selling and administrative costs of $100,000 during the month.
Prepare Conklin Corporation's income statement for its first month of operations. Ignore
(Input all amounts as positive values. Omit the "$" sign in your response.)
Cost of goods sold
Selling & administrative
Determine the company's inventory balances at the end of its first month of operations.
the "$" sign in your response.)
Ending Materials Inventory
Ending Work in Process Inv.
Ending Finished Goods