Reference no: EM132318491
Problem
Sheffield, Inc. manufactures ergonomically designed computer furniture. Sheffield uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs:
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Job No.
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Item
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Units
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Accumulated Cost
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CC723
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Computer caddy
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25,000
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$960,000
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|
CH291
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Chair
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18,000
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433,000
|
|
PS812
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Printer stand
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26,000
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300,000
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|
|
|
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$1,693,000
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On November 30, Sheffield's Raw Materials Inventory account totaled $697,000, and its Finished Goods Inventory totaled $3,476,400. Sheffield applies manufacturing overhead on the basis of machine hours.
The company's manufacturing overhead budget for the year totaled $5,000,000, and the company planned to use 1,000,000 machine hours during the year.
Through the first eleven months of the year, the company used a total of 850,000 machine hours, total manufacturing overhead amounted to $4,284,500, and Cost of Goods Sold was $8,760,250. For the pursposes of this problem, ignore year-end disposition of over / under applied overhead.
Sheffield purchased $648,000 in raw materials in December and incurred the following costs for jobs in process that month:
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|
|
|
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Job No.
|
Materials
Issued
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Machine
Hours
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Direct Labor
Hours
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Direct Labor
Cost
|
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CC723
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$192,000
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13,000
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13,200
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$122,400
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CH291
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518,500
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4,600
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4,000
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$47,200
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|
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247,000
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22,000
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14,300
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$225,500
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|
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260,000
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17,000
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16,900
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$138,000
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The following jobs were completed in December and transferred to the Finished Goods Inventory:
Job No. Item Units
CC723 Computer caddy 25,000
CH291 Chair 18,000
DS444 Desk 9,000
(a) Calculate the total cost of each of the four jobs worked on in December
Total Cost $
(b) Calculate the total manufacturing cost for December.
Total manufacturing cost $
(c) Calculate the cost of goods manufactured for December.
Cost of goods manufactured $
(d) Calculate the balance in the Work in Process Inventory account on December 31. Balance in work in process $
(e) Assume that Sheffield sold 15,000 computer caddies, 12,000 chairs, and 4,500 desks in December. Calculate Cost of Goods Sold for the month of December and the ending
Finished Goods Inventory balance on December 31.
Cost of goods sold
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