Partially completed T-accounts and additional information for Pine Ridge Corpora
ID: 2342083 • Letter: P
Question
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 $28 per hour.
During the month, sales revenue was $601,200, and selling and administrative costs were $103,700.
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 purchased in June?
b. What was the over- or underapplied manufacturing overhead for June?
c. What was the manufacturing overhead application rate in June?
d. What was the cost of products completed during June?
e. What was the balance of the Work-in-Process Inventory account at the beginning of June?
f. What was the operating profit (or loss) for June?
Materials Inventory BB (2/1) 57,400 227,800 189,900Explanation / Answer
Materials Inventory BB (2/1) 57,400 227,800 189,900 Work-In-Process Inventory BB (2/1) 101,600 Labor 186,000 Finished Goods Inventory BB (2/1) 200,700 346,300 250,100 Cost of Goods Sold 24140 250,100 274,240 EB(28/1) Manufacturing Overhead Control 156,200 156200 Applied Manufacturing Overhead 156200 132,060 24,140 1 The cost of direct materials purchased in February $227800 2 The underapplied manufacturing overhead for February $24,140. 3 The manufacturing overhead application rate in February 71% of direct labor cost 4 The cost of products completed during February $346300