Partially completed T-accounts and additional information for Pine Ridge Corporation for the month of February follow. Additional
Question:
Additional information for February follows:
¢ Labor wage rate was $25 per hour.
¢ During the month, sales revenue was $600,000, and selling and administrative costs were $105,000.
¢ This company has no indirect materials or supplies.
¢ The company applies manufacturing overhead on the basis of direct labor costs.
Required
a. What was the cost of direct materials issued to production during February?
b. What was the over- or under-applied manufacturing overhead for February?
c. What was the manufacturing overhead application rate in February?
d. What was the cost of products completed during February?
e. What was the balance of the Work-in-Process Inventory account at the end of February?
f. What was the operating profit for February? Any over- or under-applied overhead is written off to Cost of GoodsSold
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher