Partially completed T-accounts and additional information for Pine Ridge Corporation for the month of February follow. Materials Inventory Work-In-Process Inventory Finished Goods Inventory ВB (2/1) ВB (2/1) 100,000 BB (2/1) 56,000 227,000 200,000 345,000 190,000 Labor 187,500 251,000 Manufacturing Overhead Control Applied Manufacturing Overhead 150,000 Cost of Goods Sold 155,000 Additional information for February follows: • Labor wage rate was $25 per hour. • During the month, sales revenue was $600,000, and selling and administrative costs were $105,000. • This company has no indirect materials or supplies. • The company applies manufacturing overhead on the basis of direct labor costs. Required: a. What was the cost of direct materials issued to production during February? b. What was the over- or underapplied manufacturing overhead for February? c. What was the manufacturing overhead application rate in February? d. What was the cost of products completed during February? e. What was the balance of the Work-in-Process Inventory account at the end of February? f. What was the operating profit for February? Any over- or underapplied overhead is written off to Cost of Goods Sold.

Partially completed T-accounts and additional information for Pine Ridge Corporation for the month of February follow. Materials Inventory Work-In-Process Inventory Finished Goods Inventory ВB (2/1) ВB (2/1) 100,000 BB (2/1) 56,000 227,000 200,000 345,000 190,000 Labor 187,500 251,000 Manufacturing Overhead Control Applied Manufacturing Overhead 150,000 Cost of Goods Sold 155,000 Additional information for February follows: • Labor wage rate was $25 per hour. • During the month, sales revenue was $600,000, and selling and administrative costs were $105,000. • This company has no indirect materials or supplies. • The company applies manufacturing overhead on the basis of direct labor costs. Required: a. What was the cost of direct materials issued to production during February? b. What was the over- or underapplied manufacturing overhead for February? c. What was the manufacturing overhead application rate in February? d. What was the cost of products completed during February? e. What was the balance of the Work-in-Process Inventory account at the end of February? f. What was the operating profit for February? Any over- or underapplied overhead is written off to Cost of Goods Sold.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 2SEA: SCHEDULE OF COST OF GOODS MANUFACTURED The following information is supplied for Maupin...

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SCHEDULE OF COST OF GOODS MANUFACTURED The following information is supplied for Maupin Manufacturing Company. Prepare a schedule of cost of goods manufactured for the year ended December 31, 20--. Assume that all materials inventory items are direct materials. Work in process, January 1 77,000 Materials inventory, January 1 31,000 Materials purchases 35,000 Materials inventory, December 31 26,000 Direct labor 48,000 Overhead 20,000 Work in process, December 31 62,000
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Partially completed T-accounts and additional information for Pine Ridge Corporation for the month of February follow. Materials Inventory Work-In-Process Inventory Finished Goods Inventory ВB (2/1) BB (2/1) BB (2/1) 200,000 56,000 227,000 100,000 187,500 190,000 Labor 345,000 251,000 Cost of Goods Sold Manufacturing Overhead Control Applied Manufacturing Overhead 155,000 150,000 Additional information for February follows: • Labor wage rate was $25 per hour. • During the month, sales revenue was $600,000, and selling and administrative costs were $105,000. • This company has no indirect materials or supplies. • The company applies manufacturing overhead on the basis of direct labor costs. Required: a. What was the cost of direct materials issued to production during February? b. What was the over- or underapplied manufacturing overhead for February? c. What was the manufacturing overhead application rate d. What was the cost of products completed during February? e. What was the…
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