Selected information from the Iowa Instruments accounting records for April follows: 

Additional information for April follows:

∙ The labor wage rate was $30 per hour.

∙ During the month, sales revenue was $320,000, and selling and administrative costs were $73,000.

∙ 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

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 for April? Any over- or underapplied overhead is written off to Cost of Goods Sold. 

Transcribed Image Text:

BB (4/1) Materials Inventory 25,000 209,000 174,000 Finished Goods Inventory BB (4/1) 87,000 281,000 272,000 Manufacturing Overhead Control 77,500 77,500 Work-in-Process Inventory 90,000 91,000 Labor EB (4/30) Cost of Goods Sold 3,500 Applied Manufacturing Overhead 77,500 3,500 81,000