Selected information from the Iowa Instruments accounting records for April follows: Materials Inventory Debit Credit BB (4/1) 26,800 210,800 175,800 Work-in-Process Inventory Debit Credit Labor 95,400 EB (4/30) 92,800 Finished Goods Inventory Debit Credit BB (4/1) 88,800 288,200 273,800 Cost of Goods Sold Debit Credit 5,300 Manufacturing Overhead Control Debit Credit 79,300 79,300 Applied Manufacturing Overhead Debit Credit 89,040 83,740 5,300 Additional information for April follows: The labor wage rate was $30 per hour. During the month, sales revenue was $320,900, and selling and administrative costs were $82,000. 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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 14PB: Rexar had 1,000 units in beginning inventory before starting 9.500 units and completing 8,000 units....

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Materials Inventory
Debit	Credit
BB (4/1)	26,800
	210,800	175,800

Work-in-Process Inventory
Debit	Credit
Labor	95,400
EB (4/30)	92,800

Finished Goods Inventory
Debit	Credit
BB (4/1)	88,800
	288,200	273,800

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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