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 31Finished goods ........................................................ $125,000 $117,000Work in process ......................................................... 235,000 251,000Raw material .............................................................. 134,000 124,000 The following additional data pertain to January operations. Raw material purchased ..........................................................................$191,000Direct labor .................................................................................................... 300,000Actual manufacturing overhead .............................................................175,000Actual 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?
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
Raw material .............................................................. 134,000 124,000
The following additional data pertain to January operations.
Raw material purchased ..........................................................................$191,000
Direct labor .................................................................................................... 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
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?
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