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Selected information from the lowa Instruments accounting records for April follows: Work-in-Process Inventory Credit . Materials Inventory Debit BB (4/1) 25,800 209,800 Debit Credit 174,800 Cost of Goods Sold Credit 4,300 Debit Labor 92,400 EB (4/30) 91,800 Manufacturing Overhead Control Debit Credit 78,300 78,300 Finished Goods Inventory Debit Credit BB (4/1) Additional information for April follows: • The labor wage rate was $30 per hour. During the month, sales revenue was $320,400, and selling and administrative costs were $77,000. 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. 87,800 284, 200 272,800 Applied Manufacturing Overhead Debit Credit 78,860 4,300 83,160 Required: a. What was the cost of direct materials purchased in April? b. What was the over- or underapplied manufacturing overhead for April? c. What was the manufacturing overhead application rate in April? d. What was the cost of products completed during April? e. What was the balance of the Work-in-Process Inventory account at the beginning of April? f. 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 lowa Instruments accounting records for April follows: Work-in-Process Inventory Credit . Materials Inventory Debit BB (4/1) 25,800 209,800 Debit Credit 174,800 Cost of Goods Sold Credit 4,300 Debit Labor 92,400 EB (4/30) 91,800 Manufacturing Overhead Control Debit Credit 78,300 78,300 Finished Goods Inventory Debit Credit BB (4/1) Additional information for April follows: • The labor wage rate was $30 per hour. During the month, sales revenue was $320,400, and selling and administrative costs were $77,000. 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. 87,800 284, 200 272,800 Applied Manufacturing Overhead Debit Credit 78,860 4,300 83,160 Required: a. What was the cost of direct materials purchased in April? b. What was the over- or underapplied manufacturing overhead for April? c. What was the manufacturing overhead application rate in April? d. What was the cost of products completed during April? e. What was the balance of the Work-in-Process Inventory account at the beginning of April? f. What was the operating profit (or loss) for April? 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
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Selected information from the lowa Instruments accounting records for April follows: . . . Materials Inventory Debit BB (4/1) 25,800 209,800 Debit Credit 174,800 Cost of Goods Sold Credit 4,300 Work-in-Process Inventory Credit Debit Labor 92,400 EB (4/30) 91,800 Manufacturing Overhead Control Debit Credit 78,300 78,300 Finished Goods Inventory Debit Credit Additional information for April follows: The labor wage rate was $30 per hour. During the month, sales revenue was $320,400, and selling and administrative costs were $77,000. 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. BB (4/1) P 87,800 284, 200 272,800 Applied Manufacturing Overhead Debit Credit 78,860 4,300 83,160 Required: a. What was the cost of direct materials purchased in April? b. What was the over- or underapplied manufacturing overhead for April? c. What was the manufacturing overhead application rate in April? d. What was the cost of products completed during April? e. What was the balance of the Work-in-Process Inventory account at the beginning of April? f. What was the operating profit (or loss) for April? Any over- or underapplied overhead is written off to Cost of Goods Sold.
Transcribed Image Text:Selected information from the lowa Instruments accounting records for April follows: . . . Materials Inventory Debit BB (4/1) 25,800 209,800 Debit Credit 174,800 Cost of Goods Sold Credit 4,300 Work-in-Process Inventory Credit Debit Labor 92,400 EB (4/30) 91,800 Manufacturing Overhead Control Debit Credit 78,300 78,300 Finished Goods Inventory Debit Credit Additional information for April follows: The labor wage rate was $30 per hour. During the month, sales revenue was $320,400, and selling and administrative costs were $77,000. 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. BB (4/1) P 87,800 284, 200 272,800 Applied Manufacturing Overhead Debit Credit 78,860 4,300 83,160 Required: a. What was the cost of direct materials purchased in April? b. What was the over- or underapplied manufacturing overhead for April? c. What was the manufacturing overhead application rate in April? d. What was the cost of products completed during April? e. What was the balance of the Work-in-Process Inventory account at the beginning of April? f. 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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