Ryde and Rowe Inc. had the following account balances as of January 1 Direct Mat
ID: 2342847 • Letter: R
Question
Ryde and Rowe Inc. had the following account balances as of January 1 Direct Materials Inventory Work in Process Inventory Finished Goods Inventory Manufacturing Overhead $8,700 76,500 53,000 During the month of January, all of the following occurred. 1. Direct labor costs were $49,000 for 1,800 hours worked. 2. Direct materials costing $28,000 and indirect materials costing $4,200 were purchased 3. Sales commissions of $17,000 were earned by the sales force. 4. $23,000 worth of direct materials were used in production. 5. Advertising costs of $6,300 were incurred. 6. Factory supervisors earned salaries of $10,921. 7. Indirect labor costs for the month were $3,000. 8. Monthly depreciation on factory equipment was $4,500. 9. Utilities expense of $7,592 was incurred in the factory. 10. Equipment with manufacturing costs of $69,000 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 $98,808 were sold for $179,650Explanation / Answer
a) Calculation of direct materials inventory at the end of January (Amounts in $)
Calculation of Work in Process Inventory (Amounts in $)
Calculation of Finished Goods Inventory (Amounts in $)
b) Calculation of balance in Manufacturing Overhead account on Jan 31 (Amts in $)
c) Calculation of Operating Income (Amounts in $)
Ryde and Rowe Inc.
Income Statement for the Month ended Jan 31
Direct materials inventory at the Beginning 8,700 Add: Direct materials purchased 28,000 Less: Direct materials used (23,000) Direct materials inventory at the end 13,700Related Questions
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