FUND.COST ACCOUNTING W/ CONNECT>LLF<>IB
6th Edition
ISBN: 9781260937893
Author: LANEN
Publisher: MCG
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Textbook Question
Chapter 7, Problem 27E
Assigning Costs to Jobs
Partially completed T-accounts and additional information for Pine Ridge Corporation for the month of February follow:
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.
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FUND.COST ACCOUNTING W/ CONNECT>LLF<>IB
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