Selected information from the Iowa Instruments accounting records for April follows: Materials Inventory Debit Credit BB (4/1) 27,000 211,000 176,000 Work-in-Process Inventory Debit Credit Labor 96,000 EB (4/30) 93,000
Selected information from the Iowa Instruments accounting records for April follows:
| Materials Inventory | |||
|---|---|---|---|
| Debit | Credit | ||
| BB (4/1) | 27,000 | ||
| 211,000 | 176,000 |
| Work-in-Process Inventory | |||
|---|---|---|---|
| Debit | Credit | ||
| Labor | 96,000 | ||
| EB (4/30) | 93,000 |
| Finished Goods Inventory | |||
|---|---|---|---|
| Debit | Credit | ||
| BB (4/1) | 89,000 | ||
| 289,000 | 274,000 |
| Cost of Goods Sold | |||
|---|---|---|---|
| Debit | Credit | ||
| 5,500 |
| Manufacturing Overhead Control | |||
|---|---|---|---|
| Debit | Credit | ||
| 79,500 | |||
| 79,500 |
| Applied Manufacturing Overhead | |||
|---|---|---|---|
| Debit | Credit | ||
| 92,800 | |||
| 87,300 | |||
| 5,500 |
Additional information for April follows:
-
The labor wage rate was $30 per hour.
-
During the month, sales revenue was $321,000, and selling and administrative costs were $83,000.
-
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:
-
What was the cost of direct materials purchased in April?
-
What was the over- or underapplied manufacturing overhead for April?
-
What was the manufacturing overhead application rate in April?
-
What was the cost of products completed during April?
-
What was the balance of the Work-in-Process Inventory account at the beginning of April?
-
What was the operating profit (or loss) for April? Any over- or underapplied overhead is written off to Cost of Goods Sold.
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Selected information from the Iowa Instruments accounting records for April follows:
| Materials Inventory | |||
|---|---|---|---|
| Debit | Credit | ||
| BB (4/1) | 27,000 | ||
| 211,000 | 176,000 |
| Work-in-Process Inventory | |||
|---|---|---|---|
| Debit | Credit | ||
| Labor | 96,000 | ||
| EB (4/30) | 93,000 |
| Finished Goods Inventory | |||
|---|---|---|---|
| Debit | Credit | ||
| BB (4/1) | 89,000 | ||
| 289,000 | 274,000 |
| Cost of Goods Sold | |||
|---|---|---|---|
| Debit | Credit | ||
| 5,500 |
| Manufacturing Overhead Control | |||
|---|---|---|---|
| Debit | Credit | ||
| 79,500 | |||
| 79,500 |
| Applied Manufacturing Overhead | |||
|---|---|---|---|
| Debit | Credit | ||
| 92,800 | |||
| 87,300 | |||
| 5,500 |
Additional information for April follows:
-
The labor wage rate was $30 per hour.
-
During the month, sales revenue was $321,000, and selling and administrative costs were $83,000.
-
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:
- What was the cost of products completed during April?
-
What was the balance of the Work-in-Process Inventory account at the beginning of April?
-
What was the operating profit (or loss) for April? Any over- or underapplied overhead is written off to Cost of Goods Sold.
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