Rexford 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
|
$162,500
|
$152,100
|
|
Work in process
|
305,500
|
326,300
|
|
Raw material
|
174,200
|
161,200
|
The following additional manufacturing data pertains to January operations.
|
Raw material purchased
|
$248,300
|
|
Direct labor
|
390,000
|
|
Actual manufacturing overhead
|
227,500
|
|
Actual selling and administrative expenses
|
230,000
|
Rexford Company applies manufacturing overhead at the rate of 70 percent of direct-labor cost. Any overapplied 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?