Q16.Bodin Company manufactures nger splints for kids who get tendonitis from playing video games. The rm had the following inventories at the beginning and end of the month of January.

	January 1	January 31
Finished goods ........................................................	$125,000	$117,000
Work in process .......................................................	235,000	251,000
Raw material ............................................................	134,000	124,000

The following additional data pertain to January operations.

Raw material purchased ...............................................................................	$191,000
Direct labor ....................................................................................................	300,000
Actual manufacturing overhead ...................................................................	175,000
Actual selling and administrative expenses .................................................	115,000

The company applies manufacturing overhead at the rate of 60 percent of direct- labor cost. Any overapplied or underapplied manufacturing overhead is accumu- lated until the end of the year.

Compute the following amounts.

1. The company's prime cost for January. [1 Mark]
2. The total manufacturing cost for January. [1 Mark]
3. The cost of goods manufactured for January. [1 Mark]
4. The cost of goods sold for January. [1 Mark] 5.The balance in the manufacturing overhead account on January 31. Debit or

credit?