Problem

Job-Order Costing BasicsBodin Company manufactures finger splints for kids who get tendoni...

Job-Order Costing Basics

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

$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 over- applied or underapplied manufacturing overhead is accumulated until the end of the year.

Required: Compute the following amounts.

1. The company's prime cost for January.

2. The total manufacturing cost for January.

3. The cost of goods manufactured for January.

4. The cost of goods sold for January.

5.  The balance in the Manufacturing Overhead account on January 31. Debit or credit?

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