Assignment Problem: The Ryde and Rowe Inc. had the following account balances as of January 1:
Direct Materials Inventory $89,200
Work in Process Inventory 178,400
Finished Goods Inventory 253,600
Manufacturing Overhead -0-
During the month of January, all of the following occurred:
1. Direct labor costs were $442,000 for 18,000 hours worked.
2. Direct materials costing $335,750 and indirect materials costing $13,500 were purchased.
3. Sales commissions of $216,500 were earned by the sales force.
4. $326,000 worth of direct materials were used in production.
5. Advertising costs of $36,300 were incurred.
6. Factory supervisors earned salaries of $22,000.
7. Indirect labor costs for the month were $23,000.
8. Monthly depreciation on factory equipment was $24,500.
9. Utilities expense of $17,800 was incurred in the factory.
10. Equipment with manufacturing costs of $970,100 were transferred to finished goods.
11. Monthly insurance costs for the factory were $4,200.
12. $5,000 in property taxes on the factory were incurred and paid.
13. Equipment with manufacturing costs of $1,089,000 were sold for $1,550,000.
Required:
Question 1: If Ryde and Rowe assigns manufacturing overhead of $84,400, what will be the balances in the Direct Materials, Work in Process, and Finished Goods Inventory accounts at the end of January?
Question 2: As of January 31, what will be the balance in the Manufacturing Overhead account?
Question 3: What was Ryde and Rowe's operating income for January?
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