5087

)Delta Company had the following inventories at the beginning and end of the month of January.

January 1

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

January 31

Finished goods

$125,000

$117,000

Work in process

235,000

251,000

Raw material

134,000

124,000

The following additional manufacturing data pertains to January operations.

Raw material purchased

$191,000

Direct labor

300,000

Actual manufacturing overhead

175,000

Actual selling and administrative expenses

115,000

The Company applies manufacturing overhead at the rate of 60 percent of direct-labor cost. Any overapplied or underapplied manufacturing overhead is accumulated until the end of the year.

Required: 1. Compute the company’s prime cost for January.

2. Compute the total manufacturing cost for January.

3. Compute the cost of goods manufactured for January.

4. Compute the cost of goods sold for January.

Compute the balance in the manufacturing overhead account on January 31. Debit or credit?