Reference no: EM132791121

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        $ 126,000            $ 117,000
Work in process       235,000              251,000
Raw material            132,000            124,000

The following additional data pertain to January operations.

Raw material purchased $ 192,000
Direct labor 400,000
Actual manufacturing overhead 170,000
Actual selling and administrative expenses 110,000

The company applies manufacturing overhead at the rate of 60 percent of direct-labor cost. Any overapplied or under applied manufacturing overhead is accumulated until the end of the year.

Problem 1: Compute the cost of goods sold for January.