Bodin Company manufactures finger splints for kids who get tendonitis from playing video games. The firm...

 

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Bodin Company manufactures finger splints for kids who get tendonitis from playing video games. The firm had the following inventories at the beginning and end of the month of January. January 1 January 31 Finished goods $125,000 $117,000 Work in process 235,000 251,000 134,000 124,000 Raw material The following additional data pertain to January operations. Raw material purchased Direct labor $191,000 300,000 Actual manufacturing overhead 175,000 Actual selling and administrative expenses 115,000 The company applies manufacturing overhead at the rate of 60 percent of direct-labor cost. Any overapplied or underapplied 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? Page 117 Bodin Company manufactures finger splints for kids who get tendonitis from playing video games. The firm had the following inventories at the beginning and end of the month of January. January 1 January 31 Finished goods $125,000 $117,000 Work in process 235,000 251,000 134,000 124,000 Raw material The following additional data pertain to January operations. Raw material purchased Direct labor $191,000 300,000 Actual manufacturing overhead 175,000 Actual selling and administrative expenses 115,000 The company applies manufacturing overhead at the rate of 60 percent of direct-labor cost. Any overapplied or underapplied 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? Page 117

Answer rating: 100% (QA)

1 The companys prime cost for January Prime cost includes direct materials and direct labor To calculate the prime cost Prime Cost Direct Materials Di... View the full answer