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. January 1 January 31 Finished goods $ 124,000 $ 117,000 Work in process 235,000 251,000 Raw material 132,000 124,000 The following additional data pertain to January operations. Raw material purchased $ 191,000 Direct labor 350,000 Actual manufacturing overhead 170,000 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 accumulated until the end of the year. 2. Compute the total manufacturing cost for January.
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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.
| January 1 | January 31 | |||||||
| Finished goods | $ | 124,000 | $ | 117,000 | ||||
| Work in process | 235,000 | 251,000 | ||||||
| Raw material | 132,000 | 124,000 | ||||||
The following additional data pertain to January operations.
| Raw material purchased | $ | 191,000 | |
| Direct labor | 350,000 | ||
| Actual manufacturing |
170,000 | ||
| 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 accumulated until the end of the year.
2. Compute the total
Total manufacturing cost = (beginning raw material inventory + raw material purchase - ending raw material inventory) + direct labor cost + manufacturing overhead applied
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