Finlon upholstery inc uses a job-order costing system to

Reference no: EM13378721

Finlon Upholstery, Inc. uses a job-order costing system to accumulate manufacturing costs. The company's work-in-process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor hours, multiplied by the budgeted direct-labor rate.) Budgeted totals for 20x2 for direct labor and manufacturing overhead are $4,200,000 and $5,460,000, respectively. Actual results for the year follow. Direct Materials Used $5,600,000.00 Direct Labor $4,350,000.00 Indirect Material Used $65,000.00 Indirect Labor $2,860,000.00 Factory Depreciation $1,740,000.00 Factory Insurance $59,000.00 Factory Utilities $830,000.00 Selling and Administrative Expenses $2,160,000.00 Total $17,664,000.00 Job no. 2077 was completed in January 20x2; there was no work in process at year-end. All jobs produced during 20x2 were sold with the exception of job no. 2143, which contained direct-material costs of $156,000 and direct-labor charges of $85,000. The company charges any under- or over applied overhead to Cost of Goods Sold. Directions:

You are to do the following:

Calculate the companies predetermined overhead application rate.

Calculate the additions to the work-in-process inventory account for the direct material used, direct labor and manufacturing overhead.

Calculate the finished goods inventory for the 12/31/x2 balance sheet.

Calculate the over-applied or under applied overhead at year end.

Explain if it is appropriate to include the selling and administrative expenses within cost of goods sold.

Reference no: EM13378721

Questions Cloud

A factory benefits from discharging effluent q into a lake : a factory benefits from discharging effluent q into a lake. the marginal benefit function is given by 60-2q. the

Let b1hat and b2hat denote the estimated regression : let b1hat and b2hat denote the estimated regression coefficients from a sample of size n for y x1b1 x2b2 u.show that

Case concerning volume-based costing versus activity-based : case concerning volume-based costing versus activity-based costingcoffee bean inc. cbi processes and distributes a

Name one developing country and determine the countrys top : name one developing country and determine the countrys top five exported and imported products for the most recent year

Finlon upholstery inc uses a job-order costing system to : finlon upholstery inc. uses a job-order costing system to accumulate manufacturing costs. the companys work-in-process

Asume that bob consumes goods x and y according to the : asume that bob consumes goods x and y according to the following utility function u xy 2x 4xy ycompute bobs marginal

Assume that joe derives utility based on the following : assume that joe derives utility based on the following utility function uxy x10.6 x20.610.6if joes income is 5040 a

Fastenalt is an industrial supply manufacturer that : fastenalt is an industrial supply manufacturer that provides hvac specialty thermostats to manufacturers and retailers.

This assignment is designed to not only to give students an : this assignment is designed to not only to give students an opportunity to practice concepts learned in class but also

User Account

All Pages