Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

. - A . Materials Inventory # Debit BB (4/1) 29,000 213,000 Credit Debit 178,000 Cost of Goods Sold Credit 7,500 Work-in-Process Inventory Credit Debit

. - A . Materials Inventory # Debit BB (4/1) 29,000 213,000 Credit Debit 178,000 Cost of Goods Sold Credit 7,500 Work-in-Process Inventory Credit Debit Labor 102,000 EB (4/30) 95,000 Manufacturing Overhead Control Debit Credit 81,500 81,500 Additional information for April follows: The labor wage rate was $30 per hour. During the month, sales revenue was $322,000, and selling and administrative costs were $93,000. 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. Finished Goods Inventory Debit 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? BB (4/1) 91,000 297,000 84,300 7,500 Credit Applied Manufacturing Overhead Debit Credit 276,000 91,800 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.
image text in transcribed
image text in transcribed
- During the month, sales revenue was $322,000, and selling and administrative costs were $93,000. - 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 manufocturing overhead application rate in April? d. What was the cost of products completed during April? e. What was the batance 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. Additional information for April follows: - The labor wage rate was $30 per hour. - During the month, sales revenue was $322,000, and selling and administrative costs were $93,000. - 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 (or loss) for April? Any over-or underapplied overhead is written off to Cost of Goods Sold

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

5th Edition

1264467206, 978-1264467204

More Books

Students also viewed these Accounting questions

Question

How do certain genetic conditions affect motor control?

Answered: 1 week ago

Question

How are values illustrated in the case?

Answered: 1 week ago

Question

Describe S. Truett Cathys self-concept and self-efficacy.

Answered: 1 week ago