Homework Help is Here – Start Your Trial Now!
Business
Accounting
Partially completed T-accounts and additional information for Pine Ridge Corporation for the month of February follow. Materials Inventory Work-In-Process Inventory Finished Goods Inventory ВB (2/1) ВB (2/1) 100,000 BB (2/1) 56,000 227,000 200,000 345,000 190,000 Labor 187,500 251,000 Manufacturing Overhead Control Applied Manufacturing Overhead 150,000 Cost of Goods Sold 155,000 Additional information for February follows: • Labor wage rate was $25 per hour. • During the month, sales revenue was $600,000, and selling and administrative costs were $105,000. • This company has no indirect materials or supplies. • The company applies manufacturing overhead on the basis of direct labor costs. Required: a. What was the cost of direct materials issued to production during February? b. What was the over- or underapplied manufacturing overhead for February? c. What was the manufacturing overhead application rate in February? d. What was the cost of products completed during February? e. What was the balance of the Work-in-Process Inventory account at the end of February? f. What was the operating profit for February? Any over- or underapplied overhead is written off to Cost of Goods Sold.

Partially completed T-accounts and additional information for Pine Ridge Corporation for the month of February follow. Materials Inventory Work-In-Process Inventory Finished Goods Inventory ВB (2/1) ВB (2/1) 100,000 BB (2/1) 56,000 227,000 200,000 345,000 190,000 Labor 187,500 251,000 Manufacturing Overhead Control Applied Manufacturing Overhead 150,000 Cost of Goods Sold 155,000 Additional information for February follows: • Labor wage rate was $25 per hour. • During the month, sales revenue was $600,000, and selling and administrative costs were $105,000. • This company has no indirect materials or supplies. • The company applies manufacturing overhead on the basis of direct labor costs. Required: a. What was the cost of direct materials issued to production during February? b. What was the over- or underapplied manufacturing overhead for February? c. What was the manufacturing overhead application rate in February? d. What was the cost of products completed during February? e. What was the balance of the Work-in-Process Inventory account at the end of February? f. What was the operating profit for February? Any over- or underapplied overhead is written off to Cost of Goods Sold.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Only part E please.

### Pine Ridge Corporation: February Financial Summary #### Partially Completed T-accounts and Additional Information **Materials Inventory:** - Beginning Balance (BB) on 2/1: $56,000 - Ending Balance: $227,000 - Issued to Production: $190,000 **Work-In-Process Inventory:** - BB on 2/1: $100,000 - Labor Cost: $187,500 **Finished Goods Inventory:** - BB on 2/1: $200,000 - Transferred to Finished Goods: $345,000 - Ending Balance: $251,000 **Cost of Goods Sold:** - Cost: $345,000 **Manufacturing Overhead Control:** - Total: $155,000 **Applied Manufacturing Overhead:** - Total: $150,000 #### Additional Information: - **Labor Wage Rate:** $25 per hour - **Sales Revenue:** $600,000 - **Selling and Administrative Costs:** $105,000 - **Indirect Materials/Supplies:** None - **Overhead Application Basis:** Direct labor costs #### Required Analysis: a. **Cost of Direct Materials Issued to Production:** - Calculate using inventory balances and materials issued. b. **Over- or Underapplied Manufacturing Overhead for February:** - Determine using Manufacturing Overhead Control and Applied Manufacturing Overhead. c. **Manufacturing Overhead Application Rate:** - Calculate based on direct labor costs. d. **Cost of Products Completed:** - Analyze the costs transferred from Work-In-Process to Finished Goods. e. **Balance of the Work-In-Process Inventory at February End:** - Evaluate remaining Work-In-Process after transfers. f. **Over- or Underapplied Overhead Reconciliation:** - Adjust Cost of Goods Sold with any discrepancies in overhead application. This financial summary provides a comprehensive overview of Pine Ridge Corporation’s manufacturing operations for February. It is essential for managing production costs and financial planning.
Transcribed Image Text:### Pine Ridge Corporation: February Financial Summary #### Partially Completed T-accounts and Additional Information **Materials Inventory:** - Beginning Balance (BB) on 2/1: $56,000 - Ending Balance: $227,000 - Issued to Production: $190,000 **Work-In-Process Inventory:** - BB on 2/1: $100,000 - Labor Cost: $187,500 **Finished Goods Inventory:** - BB on 2/1: $200,000 - Transferred to Finished Goods: $345,000 - Ending Balance: $251,000 **Cost of Goods Sold:** - Cost: $345,000 **Manufacturing Overhead Control:** - Total: $155,000 **Applied Manufacturing Overhead:** - Total: $150,000 #### Additional Information: - **Labor Wage Rate:** $25 per hour - **Sales Revenue:** $600,000 - **Selling and Administrative Costs:** $105,000 - **Indirect Materials/Supplies:** None - **Overhead Application Basis:** Direct labor costs #### Required Analysis: a. **Cost of Direct Materials Issued to Production:** - Calculate using inventory balances and materials issued. b. **Over- or Underapplied Manufacturing Overhead for February:** - Determine using Manufacturing Overhead Control and Applied Manufacturing Overhead. c. **Manufacturing Overhead Application Rate:** - Calculate based on direct labor costs. d. **Cost of Products Completed:** - Analyze the costs transferred from Work-In-Process to Finished Goods. e. **Balance of the Work-In-Process Inventory at February End:** - Evaluate remaining Work-In-Process after transfers. f. **Over- or Underapplied Overhead Reconciliation:** - Adjust Cost of Goods Sold with any discrepancies in overhead application. This financial summary provides a comprehensive overview of Pine Ridge Corporation’s manufacturing operations for February. It is essential for managing production costs and financial planning.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS