Required information The following information applies to th

Required information [The following information applies to the questions displayed below.] Bodin 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 Finished goods Work in process Raw material January 1 $ 125,000 233,000 132,000 January 31 $117,000 251,000 124,000 The following additional data pertain to January operations. Raw material purchased Direct labor Actual manufacturing overhead Actual selling and administrative expenses $190,000 350,000 170,000 115,000 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 3. Compute the cost of goods manufactured for January st of goods manufactured

Solution

Direct materials 198000 =132000+190000-124000 Direct labor 350000 Manufacturing overhead 210000 =350000*60% Total manufacturing cost 758000 Add:Work in Process Jan 1 233000 991000 Less:Work in Process Jan 31 251000 Cost of goods manufactured 740000