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. Type Finished goods Work in process Raw material January 1 $ 125,000 235,000 133,000 January 31 $ 117,000 251,000 124,000 The following additional data pertain to January operations. Raw material purchased Direct labor Actual manufacturing overhead Actual selling and administrative expenses $191,000 350,000 170,000 115,000 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: 1. Compute the company's prime cost for January.
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. Type Finished goods Work in process Raw material January 1 $ 125,000 235,000 133,000 January 31 $ 117,000 251,000 124,000 The following additional data pertain to January operations. Raw material purchased Direct labor Actual manufacturing overhead Actual selling and administrative expenses $191,000 350,000 170,000 115,000 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: 1. Compute the company's prime cost for January.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.
Type
Finished goods
Work in process
Raw material
January 1
$ 125,000
235,000
133,000
January 31
$ 117,000
251,000
124,000
The following additional data pertain to January operations.
Raw material purchased
Direct labor
Actual manufacturing overhead
Actual selling and administrative expenses
$191,000
350,000
170,000
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:
1. Compute the company's prime cost for January.
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