The following partially complete T-accounts for the month of June along with additional information are from Renfrew & Company: Materials Inventory Work-in-Process Inventory Finished Goods Inventory Debit Credit Credit 39,000 168,000 144,000 Cost of Goods Sold Debit BB (6/1) Debit Credit Credit Additional information for June follows: Debit BB (6/1) 60,000 Manufacturing Overhead Control Debit Credit 112,000 BB (6/1) 115,000 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 the balance of the Work-in-Process Inventory account at the end of June? 262,000 157,000 Applied Manufacturing Overhead Debit Credit • Manufacturing overhead is applied at 90 percent of direct labor cost. • Direct labor-hours recorded on jobs in June totaled 3,900. During the month, sales revenue was $351,000, and selling and administrative costs were $67,000. 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: Materials Inventory Work-in-Process Inventory Finished Goods Inventory Debit Credit Credit 39,000 168,000 144,000 Cost of Goods Sold Debit BB (6/1) Debit Credit Credit Additional information for June follows: Debit BB (6/1) 60,000 Manufacturing Overhead Control Debit Credit 112,000 BB (6/1) 115,000 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 the balance of the Work-in-Process Inventory account at the end of June? 262,000 157,000 Applied Manufacturing Overhead Debit Credit • Manufacturing overhead is applied at 90 percent of direct labor cost. • Direct labor-hours recorded on jobs in June totaled 3,900. During the month, sales revenue was $351,000, and selling and administrative costs were $67,000. 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
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Transcribed Image Text:The following partially complete T-accounts for the month of June along with additional information are from Renfrew & Company:
Materials Inventory
Work-in-Process Inventory
Finished Goods Inventory
Debit
Credit
Credit
Debit
BB (6/1) 39,000
168,000
144,000
Cost of Goods Sold
Debit
Credit
Additional information for June follows:
Credit
Debit
BB (6/1) 60,000
Required A
Manufacturing Overhead Control
Debit
Credit
Required B
Manufacturing overhead is applied at 90 percent of direct labor cost.
• Direct labor-hours recorded on jobs in June totaled 3,900.
During the month, sales revenue was $351,000, and selling and administrative costs were $67,000.
●
• 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 the balance of the Work-in-Process Inventory account at the end of June?
112,000
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.
Complete this question by entering your answers in the tabs below.
Required C Required D
BB (6/1) 115,000
262,000 157,000
Applied Manufacturing Overhead
Debit
Credit
Required E Required F
What was the balance of the Work-in-Process Inventory account at the end of June?
Ending balance
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