Lind Manufacturing had the following account balances as of January 1: $ 8,700 76,500 Direct Materials Inventory Work in Process Inventory Finished Goods Inventory Manufacturing Overhead 53,000 0 During the month of January, all of the following occurred: 1. Direct labor costs were $40.000 for 1.800 hours worked.
Lind Manufacturing had the following account balances as of January 1: $ 8,700 76,500 Direct Materials Inventory Work in Process Inventory Finished Goods Inventory Manufacturing Overhead 53,000 0 During the month of January, all of the following occurred: 1. Direct labor costs were $40.000 for 1.800 hours worked.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
4
Transcribed Image Text:Lind Manufacturing had the following account balances as of January 1:
Direct Materials Inventory
Work in Process Inventory
Finished Goods Inventory
Manufacturing Overhead
During the month of January, all of the following occurred:
$ 8,700
76,500
53,000
0
1. Direct labor costs were $40,000 for 1,800 hours worked.
2. Direct materials costing $27,000 and indirect materials costing $4,100 were purchased.
3. Sales commissions of $16,500 were earned by the sales force.
4. Direct materials of $23,000 were used in production.
5. Miscellaneous selling and administrative costs of $6,300 were incurred.
6. Factory supervisors earned salaries of $10,030.
7. Indirect labor costs for the month were $3,000.
8. Monthly depreciation on factory equipment was $4,500.
9. Monthly utilities expenses of $5,225 were incurred in the factory.
10. Completed units with manufacturing costs of $69,000 were transferred to finished goods.
11. Monthly insurance costs for the factory were $4,200.
12. Monthly property taxes on the factory of $5,000 were incurred and paid.
13. Units with manufacturing costs of $96,161 were sold for $174,838.
Required:
a. If Lind assigns manufacturing overhead of $34,400, 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?
a. Direct materials inventory
a. Work in process inventory
a. Finished goods inventory
b. Manufacturing overhead
c. Operating income
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education