Bodin Company manufactures linger splints for kids who get tendonitis from playing video games. The lion had the following inventories at the beginning and end of the month of January.

The following additional data pertain to January operations.

Raw material purchased ……………………….....................$191000

Direct labor …………………………………….............................300,000

Actual manufacturing overhead ……………….................175,000

Actual selling and administrative expenses ……...........115000

The company applies manufacturing overhead at the rate of 60 percent of direct-labor cost. Any over- applied or under applied manufacturing overhead is accumulated until the end of the year.

Required: 

Compute the following amounts.

1. The company’s prime Cost for January.

2. The total manufacturing cost for January.

3. The cost of goods manufactured for January.

4. The cost of goods sold for January.

5. The balance in the Manufacturing Overhead account on January 31. Debit or credit?

Transcribed Image Text:

Finished goods Work in process Raw material. January 1 January 31 $125,000 $117,000 251,000 124,000 235,000 134,000