Partially completed T-accounts and additional information for Pine Ridge Corporation for the month of February follow. Materials Inventory 56,000 227,000 Finished Goods Inventory 200,000 345,000 Work-In-Process Inventory ВB (2/1) BB (2/1) 100,000 ВB (2/1) 190,000 Labor 187,500 251,000 Manufacturing Overhead Control 155,000 Cost of Goods Sold Applied Manufacturing Overhead 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 in February?
Partially completed T-accounts and additional information for Pine Ridge Corporation for the month of February follow. Materials Inventory 56,000 227,000 Finished Goods Inventory 200,000 345,000 Work-In-Process Inventory ВB (2/1) BB (2/1) 100,000 ВB (2/1) 190,000 Labor 187,500 251,000 Manufacturing Overhead Control 155,000 Cost of Goods Sold Applied Manufacturing Overhead 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 in February?
Chapter5: Process Costing
Section: Chapter Questions
Problem 14PA: Loanstar had 100 units in beginning inventory before starting 950 units and completing 800 units....
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