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.
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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Only part E please.
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