Selected information from the Iowa Instruments accounting records for April follows: Materials Inventory Debit Credit BB (4/1) 26,800 210,800 175,800 Work-in-Process Inventory Debit Credit Labor 95,400 EB (4/30) 92,800 Finished Goods Inventory Debit Credit BB (4/1) 88,800 288,200 273,800 Cost of Goods Sold Debit Credit 5,300 Manufacturing Overhead Control Debit Credit 79,300 79,300 Applied Manufacturing Overhead Debit Credit 89,040 83,740 5,300 Additional information for April follows: The labor wage rate was $30 per hour. During the month, sales revenue was $320,900, and selling and administrative costs were $82,000. This company has no indirect materials or supplies. The company applies manufacturing overhead on the basis of direct labor-hours. Customer returns are discarded and not resold. Required: What was the cost of direct materials purchased in April? What was the over- or underapplied manufacturing overhead for April? What was the manufacturing overhead application rate in April? What was the cost of products completed during April? What was the balance of the Work-in-Process Inventory account at the beginning of April? What was the operating profit (or loss) for April? Any over- or underapplied overhead is written off to Cost of Goods Sold
Selected information from the Iowa Instruments accounting records for April follows: Materials Inventory Debit Credit BB (4/1) 26,800 210,800 175,800 Work-in-Process Inventory Debit Credit Labor 95,400 EB (4/30) 92,800 Finished Goods Inventory Debit Credit BB (4/1) 88,800 288,200 273,800 Cost of Goods Sold Debit Credit 5,300 Manufacturing Overhead Control Debit Credit 79,300 79,300 Applied Manufacturing Overhead Debit Credit 89,040 83,740 5,300 Additional information for April follows: The labor wage rate was $30 per hour. During the month, sales revenue was $320,900, and selling and administrative costs were $82,000. This company has no indirect materials or supplies. The company applies manufacturing overhead on the basis of direct labor-hours. Customer returns are discarded and not resold. Required: What was the cost of direct materials purchased in April? What was the over- or underapplied manufacturing overhead for April? What was the manufacturing overhead application rate in April? What was the cost of products completed during April? What was the balance of the Work-in-Process Inventory account at the beginning of April? What was the operating profit (or loss) for April? Any over- or underapplied overhead is written off to Cost of Goods Sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Selected information from the Iowa Instruments accounting records for April follows:
| Materials Inventory | |||
|---|---|---|---|
| Debit | Credit | ||
| BB (4/1) | 26,800 | ||
| 210,800 | 175,800 |
| Work-in-Process Inventory | |||
|---|---|---|---|
| Debit | Credit | ||
| Labor | 95,400 | ||
| EB (4/30) | 92,800 |
| Finished Goods Inventory | |||
|---|---|---|---|
| Debit | Credit | ||
| BB (4/1) | 88,800 | ||
| 288,200 | 273,800 |
| Cost of Goods Sold | |||
|---|---|---|---|
| Debit | Credit | ||
| 5,300 |
| Manufacturing |
|||
|---|---|---|---|
| Debit | Credit | ||
| 79,300 | |||
| 79,300 |
| Applied Manufacturing Overhead | |||
|---|---|---|---|
| Debit | Credit | ||
| 89,040 | |||
| 83,740 | |||
| 5,300 |
Additional information for April follows:
-
The labor wage rate was $30 per hour.
-
During the month, sales revenue was $320,900, and selling and administrative costs were $82,000.
-
This company has no indirect materials or supplies.
-
The company applies manufacturing overhead on the basis of direct labor-hours.
-
Customer returns are discarded and not resold.
Required:
-
What was the cost of direct materials purchased in April?
-
What was the over- or underapplied manufacturing overhead for April?
-
What was the manufacturing overhead application rate in April?
-
What was the cost of products completed during April?
-
What was the balance of the Work-in-Process Inventory account at the beginning of April?
-
What was the operating profit (or loss) for April? Any over- or underapplied overhead is written off to Cost of Goods Sold
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