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The following partially complete T-accounts for the month of June along with additional information are from Renfrew & Company: Finished Goods Inventory Debit Materials Inventory Debit BB (6/1) Credit 54,000 198,000 Cost of Goods Sold Debit 159,000 Credit Additional information for June follows: Work-in-Process Inventory Credit Debit BB (6/1) 75,000 Manufacturing Overhead Control Debit Credit 127,000 balance the Work-in-Process Inventory account at BB (6/1) 130,000 277,000 • Manufacturing overhead is applied at 90 percent of direct labor cost. • Direct labor-hours recorded on jobs in June totaled 4,200. • During the month, sales revenue was $426,000, and selling and administrative costs were $82,000. • The labor wage rate was $25 per hour. • This company uses no indirect materials or supplies. • Any products returned by customers are discarded and not resold. Required: a. What cost amount of direct materials was issued to production during June? b. How much manufacturing overhead was applied to products during June? c. What was the cost of products completed during June? d. What was end of June? Credit 172,000 Applied Manufacturing Overhead Debit Credit e. What was the over- or underapplied manufacturing overhead for June? f. What was the operating profit (loss) for June? Any over- or underapplied overhead is written off to Cost of Goods Sold.

The following partially complete T-accounts for the month of June along with additional information are from Renfrew & Company: Finished Goods Inventory Debit Materials Inventory Debit BB (6/1) Credit 54,000 198,000 Cost of Goods Sold Debit 159,000 Credit Additional information for June follows: Work-in-Process Inventory Credit Debit BB (6/1) 75,000 Manufacturing Overhead Control Debit Credit 127,000 balance the Work-in-Process Inventory account at BB (6/1) 130,000 277,000 • Manufacturing overhead is applied at 90 percent of direct labor cost. • Direct labor-hours recorded on jobs in June totaled 4,200. • During the month, sales revenue was $426,000, and selling and administrative costs were $82,000. • The labor wage rate was $25 per hour. • This company uses no indirect materials or supplies. • Any products returned by customers are discarded and not resold. Required: a. What cost amount of direct materials was issued to production during June? b. How much manufacturing overhead was applied to products during June? c. What was the cost of products completed during June? d. What was end of June? Credit 172,000 Applied Manufacturing Overhead Debit Credit e. What was the over- or underapplied manufacturing overhead for June? f. What was the operating profit (loss) for June? Any over- or underapplied overhead is written off to Cost of Goods Sold.

Century 21 Accounting General Journal
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
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The following partially complete T-accounts for the month of June along with additional information are from Renfrew & Company: Work-in-Process Inventory Finished Goods Inventory Debit Credit Credit Materials Inventory Debit BB (6/1) 54,000 198,000 Debit Credit Cost of Goods Sold 159,000 Credit Additional information for June follows: Debit Required A Required B BB (6/1) 75,000 Manufacturing Overhead Control Debit Credit 127,000 • This company uses no indirect materials or supplies. • Any products returned by customers are discarded and not resold. Required: a. What cost amount of direct materials was issued to production during June? b. How much manufacturing overhead was applied to products during June? c. What was the cost of products completed during June? • Manufacturing overhead is applied at 90 percent of direct labor cost. • Direct labor-hours recorded on jobs in June totaled 4,200. • During the month, sales revenue was $426,000, and selling and administrative costs were $82,000. • The labor wage rate was $25 per hour. Complete this question by entering your answers in the tabs below. d. What was the balance of the Work-in-Process Inventory account at the end of June? e. What was the over- or underapplied manufacturing overhead for June? f. What was the operating profit (loss) for June? Any over- or underapplied overhead is written off to Cost of Goods Sold. Required C Required D Required E BB (6/1) 130,000 Required F 277,000 172,000 Applied Manufacturing Overhead Debit Credit What cost amount of direct materials was issued to production during June?
Transcribed Image Text:The following partially complete T-accounts for the month of June along with additional information are from Renfrew & Company: Work-in-Process Inventory Finished Goods Inventory Debit Credit Credit Materials Inventory Debit BB (6/1) 54,000 198,000 Debit Credit Cost of Goods Sold 159,000 Credit Additional information for June follows: Debit Required A Required B BB (6/1) 75,000 Manufacturing Overhead Control Debit Credit 127,000 • This company uses no indirect materials or supplies. • Any products returned by customers are discarded and not resold. Required: a. What cost amount of direct materials was issued to production during June? b. How much manufacturing overhead was applied to products during June? c. What was the cost of products completed during June? • Manufacturing overhead is applied at 90 percent of direct labor cost. • Direct labor-hours recorded on jobs in June totaled 4,200. • During the month, sales revenue was $426,000, and selling and administrative costs were $82,000. • The labor wage rate was $25 per hour. Complete this question by entering your answers in the tabs below. d. What was the balance of the Work-in-Process Inventory account at the end of June? e. What was the over- or underapplied manufacturing overhead for June? f. What was the operating profit (loss) for June? Any over- or underapplied overhead is written off to Cost of Goods Sold. Required C Required D Required E BB (6/1) 130,000 Required F 277,000 172,000 Applied Manufacturing Overhead Debit Credit What cost amount of direct materials was issued to production during June?
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