Reference no: EM132775699
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.
January 1 January 31
Finished goods $ 126,000 $ 117,000
Work in process 235,000 251,000
Raw material 132,000 124,000
The following additional data pertain to January operations.
Raw material purchased $ 192,000
Direct labor 400,000
Actual manufacturing overhead 170,000
Actual selling and administrative expenses 110,000
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.
Problem 1: Compute the balance in the manufacturing overhead account on January 31. Debit or credit?
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: Bodin Company manufactures finger splints for kids, Compute the balance in the manufacturing overhead account on January 31. Debit or credit?
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