L$016-3,$ L$016-4,$ L$016-5$ Lind Manufacturing had the following account balances as of January $1.$

EXERCISE $16\mathrm{.}6$

Flow of Costs through

Manufacturing Accounts

Direct Materials Invento

Work in Process Inventc

Finished Goods Inventc

Manufacturing Overhea

During the month of January, all of the following occurred.

Direct labor costs were $$460,000$ for $18,400$ hours worked.

Direct materials costing $$340,000$ and indirect materials costing $$10,000$ were purchased.

Sales commissions of $$210,000$ were earned by the sales force.

Direct materials of $$330,000$ were used in production.

Miscellaneous selling and administrative costs of $$160,000$ were incurred.

Factory supervisors earned salaries of $$36,000.$

Indirect labor costs for the month were $$25,000.$

Monthly depreciation on factory equipment was $$30,000.$

Monthly utilities expenses of $$16,000$ were incurred in the factory.

Completed units with manufacturing costs of $$780,000$ were transferred to finished goods.

Monthly insurance costs for the factory were $$5,000.$

Monthly property taxes on the factory of $$3,000$ were incurred and paid.

Units with manufacturing costs of $$830,000$ were sold for $$1,400,000.$

Instructions

a$.$ If Lind assigns manufacturing overhead of $$90,000,$ what will be the balances in the Direct

Materials, Work in Process, and Finished Goods Inventory accounts at the end of January?

b$.$ As of January $31,$ what will be the balance in the Manufacturing Overhead account?

c$.$ What was Lind's operating income for January?