The following partially complete T-accounts for the month of June along with additional information are from Renfrew & Company: Finished Goods Inventory Debit Materials Inventory Debit BB (6/1) Credit 54,000 198,000 Cost of Goods Sold Debit 159,000 Credit Additional information for June follows: Work-in-Process Inventory Credit Debit BB (6/1) 75,000 Manufacturing Overhead Control Debit Credit 127,000 balance the Work-in-Process Inventory account at BB (6/1) 130,000 277,000 • Manufacturing overhead is applied at 90 percent of direct labor cost. • Direct labor-hours recorded on jobs in June totaled 4,200. • During the month, sales revenue was $426,000, and selling and administrative costs were $82,000. • The labor wage rate was $25 per hour. • This company uses no indirect materials or supplies. • Any products returned by customers are discarded and not resold. Required: a. What cost amount of direct materials was issued to production during June? b. How much manufacturing overhead was applied to products during June? c. What was the cost of products completed during June? d. What was end of June? Credit 172,000 Applied Manufacturing Overhead Debit Credit e. What was the over- or underapplied manufacturing overhead for June? f. What was the operating profit (loss) for June? Any over- or underapplied overhead is written off to Cost of Goods Sold.
The following partially complete T-accounts for the month of June along with additional information are from Renfrew & Company: Finished Goods Inventory Debit Materials Inventory Debit BB (6/1) Credit 54,000 198,000 Cost of Goods Sold Debit 159,000 Credit Additional information for June follows: Work-in-Process Inventory Credit Debit BB (6/1) 75,000 Manufacturing Overhead Control Debit Credit 127,000 balance the Work-in-Process Inventory account at BB (6/1) 130,000 277,000 • Manufacturing overhead is applied at 90 percent of direct labor cost. • Direct labor-hours recorded on jobs in June totaled 4,200. • During the month, sales revenue was $426,000, and selling and administrative costs were $82,000. • The labor wage rate was $25 per hour. • This company uses no indirect materials or supplies. • Any products returned by customers are discarded and not resold. Required: a. What cost amount of direct materials was issued to production during June? b. How much manufacturing overhead was applied to products during June? c. What was the cost of products completed during June? d. What was end of June? Credit 172,000 Applied Manufacturing Overhead Debit Credit e. What was the over- or underapplied manufacturing overhead for June? f. What was the operating profit (loss) for June? 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
Transcribed Image Text:The following partially complete T-accounts for the month of June along with additional information are from Renfrew & Company:
Work-in-Process Inventory
Finished Goods Inventory
Debit
Credit
Credit
Materials Inventory
Debit
BB (6/1)
54,000
198,000
Debit
Credit
Cost of Goods Sold
159,000
Credit
Additional information for June follows:
Debit
Required A Required B
BB (6/1)
75,000
Manufacturing Overhead Control
Debit
Credit
127,000
• This company uses no indirect materials or supplies.
• Any products returned by customers are discarded and not resold.
Required:
a. What cost amount of direct materials was issued to production during June?
b. How much manufacturing overhead was applied to products during June?
c. What was the cost of products completed during June?
• Manufacturing overhead is applied at 90 percent of direct labor cost.
• Direct labor-hours recorded on jobs in June totaled 4,200.
• During the month, sales revenue was $426,000, and selling and administrative costs were $82,000.
• The labor wage rate was $25 per hour.
Complete this question by entering your answers in the tabs below.
d. What was the balance of the Work-in-Process Inventory account at the end of June?
e. What was the over- or underapplied manufacturing overhead for June?
f. What was the operating profit (loss) for June? Any over- or underapplied overhead is written off to Cost of Goods Sold.
Required C Required D Required E
BB (6/1) 130,000
Required F
277,000
172,000
Applied Manufacturing Overhead
Debit
Credit
What cost amount of direct materials was issued to production during June?
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 3 steps
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