week 7 EX3-27 - Exercise 3-27 Job-Order Costing Basics(LO 2...

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Exercise 3-27 Job-Order Costing Basics (LO 2, 6) 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 $ 90,000 $ 162,000 Work in process 230,000 301,000 Raw material 100,000 155,000 The following additional data pertain to January operations. Raw material purchased $ 240,000 Direct labor
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330,000 Actual manufacturing overhead 175,000 Actual selling and administrative expenses 109,000 The company applies manufacturing overhead at the rate of 67 percent of direct-labor cost. Any overapplied or underapplied manufacturing overhead is accumulated until the end of the year. Requirement 1: Compute the company's prime cost for January. (Omit the "$" sign in your response.) Prime cost $ 515,000 Feedback: Raw-material inventory, January 1 $ 100,000 Add: Raw-material purchases 240,000 Raw material available for use $ 340,000 Deduct: Raw-material inventory, January 31
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This note was uploaded on 03/30/2010 for the course COB ACCY 202 taught by Professor Shapland during the Spring '10 term at University of Illinois, Urbana Champaign.

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week 7 EX3-27 - Exercise 3-27 Job-Order Costing Basics(LO 2...

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