Rexford Company manafactures 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.................$162,500 $152,100
Work in process................305,500 326,300
Raw material....................174,200 161,200
The following additional manufacturing data pertains to January operations.
Raw material purchased..................$248,300
Direct labor.................................390,000
Actual manufacturing overhead..........227,500
Actual selling and admistrative expenses.230,000
Rexford Company applies manufacturing overhead at the rate of 70 percent of direct-labor cost. Any overapplied or underapplied manufacturing overhead is accumulated untile the end of the year.
Required: Compute the following amounts
1. The company's prime cost for January
2. The total manufacturing cost for January
3. The cost of goods nmanufactured for January
4. The cost of goods sold for January
5. The balane in the Manufacturing Overhead account on January 31. Debit or credit?