Lind Manufacturing had the following account balances as of January 1. $ 8,700 76,500 53,000 Direct Materials Inventory Work in Process Inventory Finished Goods Inventory Manufacturing Overhead During the month of January, all of the folowing occurred. 1. Direct labor costs were $40,000 for 1,800 hours worked. 2. Direct materials costing $25,000 and indirect materials costing $4,700 were purchased. 3. Sales commissions of $16,000 were earned by the sales force. 4. Direct materials of $23,000 were used in production. 5. Miscellaneous selling and administrative costs of $6,30o0 were incurred. 6. Factory supervisors earned salaries of $11,020. 7. Other Indirect labor costs for the month were $3,000. 8. Monthly depreciation on factory equipment was $4,500. 9. Monthly utilities expenses of $6,623 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 $91,912 were sold for $167113. Required: a. If Lind assigns manufacturing overhead of $34,400, what will be the balances in the Direct Materials, Work in Proces 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?
Lind Manufacturing had the following account balances as of January 1. $ 8,700 76,500 53,000 Direct Materials Inventory Work in Process Inventory Finished Goods Inventory Manufacturing Overhead During the month of January, all of the folowing occurred. 1. Direct labor costs were $40,000 for 1,800 hours worked. 2. Direct materials costing $25,000 and indirect materials costing $4,700 were purchased. 3. Sales commissions of $16,000 were earned by the sales force. 4. Direct materials of $23,000 were used in production. 5. Miscellaneous selling and administrative costs of $6,30o0 were incurred. 6. Factory supervisors earned salaries of $11,020. 7. Other Indirect labor costs for the month were $3,000. 8. Monthly depreciation on factory equipment was $4,500. 9. Monthly utilities expenses of $6,623 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 $91,912 were sold for $167113. Required: a. If Lind assigns manufacturing overhead of $34,400, what will be the balances in the Direct Materials, Work in Proces 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:Lind Manufacturing had the following account balances as of January 1.
Direct Materials Inventory
Work in Process Inventory
Finished Gooda Inventory
Manufacturing Overhead
$ 8,700
76,500
53,000
During the month of January, all of the folowing occurred.
1. Direct labor costs were $40,000 for 1,800 hours worked.
2. Direct materials costing $25,000 and indirect materiais costing $4,700 were purchased.
3. Sales commissions of $16,000 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 $11,020.
7. Other Indirect labor costs for the month were $3,000.
8. Monthly depreciation on factory equipment was $4,500.
9. Monthly utilities expenses of $6,623 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 $91,912 were sold for $167,113.
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?
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