Selected information from the lowa Instruments accounting records for April follows:
Additional information for April follows:
The labor wage rate was $ per hour.
During the month, sales revenue was $ and selling and administrative costs were $
This company has no indirect materials or supplies.
The company applies manufacturing overhead on the basis of direct laborhours.
Customer returns are discarded and not resold.
Required:
a What was the cost of direct materials purchased in April?
b What was the over or underapplied manufacturing overhead for April?
c What was the manufacturing overhead application rate in April?
d What was the cost of products completed during April?
e What was the balance of the WorkinProcess Inventory account at the beginning of April?
f What was the operating profit or loss for April? Any over or underapplied overhead is written off to Cost of Goods Sold.
