Required information The following information applies to the questions displaye
ID: 2334440 • Letter: R
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Required information The following information applies to the questions displayed below Bodin Company manufactures finger splints for kids who get tendonitis from playing video games. The firm had the following inventories at the beginning and end of the month of January. January1 125,000 233,000 132,000 January 31 Finished goods Work in process Raw material $ 117,000 251,000 124,000 The following additional data pertain to January operations. Raw material purchased Direct labor Actual manufacturing overhead Actual selling and administrative expenses $191,000 400,000 170,000 120,000 The company applies manufacturing overhead at the rate of 60 percent of direct-labor cost. Any ted until the end of the year.Explanation / Answer
Answer 1.
Direct Materials used = Beginning Raw Material + Raw Material Purchased - Ending Raw Material
Direct Materials used = $132,000 + $191,000 - $124,000
Direct Materials used = $199,000
Prime Cost = Direct Materials used + Direct Labor
Prime Cost = $199,000 + $400,000
Prime Cost = $599,000
Answer 2.
Manufacturing Overhead applied = Direct Labor * Overhead Rate
Manufacturing Overhead applied = $400,000 * 60%
Manufacturing Overhead applied = $240,000
Total Manufacturing Cost = Direct Materials used + Direct Labor + Manufacturing Overhead applied
Total Manufacturing Cost = $199,000 + $400,000 + $240,000
Total Manufacturing Cost = $839,000
Answer 3.
Cost of Goods Manufactured = Beginning Work in Process + Total Manufacturing Cost - Ending Work in Process
Cost of Goods Manufactured = $233,000 + $839,000 - $251,000
Cost of Goods Manufactured = $821,000
Answer 4.
Cost of Goods Sold = Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods
Cost of Goods Sold = $125,000 + $821,000 - $117,000
Cost of Goods Sold = $829,000
Answer 5.
Overapplied Manufacturing Overhead = Manufacturing Overhead applied - Actual Manufacturing Overhead
Overapplied Manufacturing Overhead = $240,000 - $170,000
Overapplied Manufacturing Overhead = $70,000
Manufacturing Overhead Account balance on January 31 is $70,000 Credit
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