The below partially complete T-accounts for the month of June along with additional information are from Renfrew
Question:
The below partially complete T-accounts for the month of June along with additional information are from Renfrew & Company:
Materials Inventory | ||||
---|---|---|---|---|
Debit | Credit | |||
BB (6/1) | 55,000 | |||
200,000 | 160,000 |
Work-in-Process Inventory | ||||
---|---|---|---|---|
Debit | Credit | |||
BB (6/1) | 76,000 | |||
Finished Goods Inventory | ||||
---|---|---|---|---|
Debit | Credit | |||
BB (6/1) | 131,000 | |||
278,000 | 173,000 |
Cost of Goods Sold | ||||
---|---|---|---|---|
Debit | Credit | |||
Manufacturing Overhead Control | ||||
---|---|---|---|---|
Debit | Credit | |||
128,000 | ||||
Applied Manufacturing Overhead | ||||
---|---|---|---|---|
Debit | Credit | |||
Additional information for June follows:
Manufacturing overhead is applied at 90 percent of direct labor cost.
Direct labor-hours recorded on jobs in June totaled 4,220.
During the month, sales revenue was $431,000, and selling and administrative costs were $83,000.
The labor wage rate was $25 per hour.
This company uses no indirect materials or supplies.
Any products returned by customers are discarded and not resold.
Required:
A: What cost amount of direct materials was issued to production during June?
B: How much manufacturing overhead was applied to products during June?
C: What was the cost of products completed during June?
D: What was the balance of the Work-in-Process Inventory account at the end of June?
E: What was the over- or under applied manufacturing overhead for June?
F: What was the operating profit (loss) for June? Any over- or under applied overhead is written off to Cost of Goods Sold.
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher