Outdoor Furniture Company has inventory balances at the end ofAugust as follows:
Materials inventory$21,360
Work-in-Process inventory15,112
Finished goods inventory17,120
Job order cost cards for jobs in process at the company as ofthe end of September were as follows:
Job Number Direct Materials Direct Labor Mfg Overhead
48A $1,596 $1,290 $1,677
48B $1,492 $1,380 $1,794
48C $1,984 $1,760 $2,288
48D $1,608 $1,540 $2,002
Materials purchased and received in September:
September 4 $33,120
September 16 $28,600
September 22 $31,920
Direct labor costs for September:
September 15 payroll $23,680
September 29 payroll $25,960
Predetermined overhead rate:
130% of direct labor costs
Direct material transferred to production during September:
September 6 $37,240
September 23 $38,960
Finished goods with a 75% markup over cost were sold duringSeptember for $230,000.
a. Compute the cost of units completed during the month.
b. What was the total cost of units sold during the month?
c. What are ending inventory balances?
Outdoor Furniture Company has inventory balances at the end ofAugust as follows:
Materials inventory$21,360
Work-in-Process inventory15,112
Finished goods inventory17,120
Job order cost cards for jobs in process at the company as ofthe end of September were as follows:
Job Number Direct Materials Direct Labor Mfg Overhead
48A $1,596 $1,290 $1,677
48B $1,492 $1,380 $1,794
48C $1,984 $1,760 $2,288
48D $1,608 $1,540 $2,002
Materials purchased and received in September:
September 4 $33,120
September 16 $28,600
September 22 $31,920
Direct labor costs for September:
September 15 payroll $23,680
September 29 payroll $25,960
Predetermined overhead rate:
130% of direct labor costs
Direct material transferred to production during September:
September 6 $37,240
September 23 $38,960
Finished goods with a 75% markup over cost were sold duringSeptember for $230,000.
a. Compute the cost of units completed during the month.
b. What was the total cost of units sold during the month?
c. What are ending inventory balances?
Related questions
Pedriani Company uses a job order cost system and applies overhead to production on the basis of direct labor hours. On January 1, 2017, Job No. 25 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $10,000; direct labor $6,000; and manufacturing overhead $9,000. Job No. 23 had been completed at a cost of $42,000 and was part of finished goods inventory. There was a $5,000 balance in the Raw Materials Inventory account.
During the month of January, the company began production on Jobs 26 and 27, and completed Jobs 25 and 26. Jobs 23 and 25 were sold on account during the month for $63,000 and $74,000, respectively. The following additional events occurred during the month.
1. Purchased additional raw materials of $45,000 on account.
2. Incurred factory labor costs of $33,500. Of this amount, $7,500 related to employer
payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $10,000;
indirect labor $9,500; depreciation expense on equipment $12,000; and various
other manufacturing overhead costs on account $11,000.
4. Assigned direct materials and direct labor to jobs as follows.
| Job No. | Direct Materials | Direct Labor |
| 25 | $ 5,000 | $ 3,000 |
| 26 | 17,000 | 12,000 |
| 27 | 13,000 | 9,000 |
5. The company uses direct labor hours as the activity base to assign overhead. Direct labor hours incurred on each job were as follows: Job No. 25, 200; Job No. 26, 800; and Job No. 27, 600.
Instructions
(a) Calculate the predetermined overhead rate for the year 2017, assuming Pedriani Company estimates total manufacturing overhead costs of $440,000, direct labor costs of $300,000, and direct labor hours of 20,000 for the year.
(b) Open job cost sheets for Jobs 25, 26, and 27. Enter the January 1 balances on the job cost sheet for Job No. 25.
(c) Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January.
(d) Prepare the journal entries to record the assignment of direct materials, direct labor, and manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). Post all costs to the job cost sheets as necessary.
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(e) Total the job cost sheets for any job(s) completed during the month. Prepare the journal entry (or entries) to record the completion of any job(s) during the month.
(f) Prepare the journal entry (or entries) to record the sale of any job(s) during the month.
(g) What is the balance in the Work in Process Inventory account at the end of the month? What does this balance consist of?
(h) What is the amount of over- or underapplied overhead?
| Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during MarchâJob P and Job Q. Job P was completed and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):
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