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The Clash Company uses Normal Job-Order Costing in its individual production department. Overhead is applied to jobs by a predetermined rate, which is depend on machine hours. The Company started business on December 1, 2011. The only job began into process during December was Job 45. During December the Company purchased direct materials with a total cost of $15,000. Of this total for direct materials, $2,500 was used on Job 45. The Company also charged a total of $7,500 in conversion costs (direct labor + overhead) to Job 45 during December. Job 45 was NOT finished as of the finished of December and no other jobs were worked on during the month. There was no underapplied or overapplied overhead for December. The following transactions happend during 2012.1. Estimated overhead for 2012 is $384,000. The estimated machine hours for 2012 total 24,000.2. Direct materials purchased during 2012 cost a total of $150,000.
Task:
A. Compute the ending balances in Materials Inventory and Work In Process Inventory as of December 31, 2011.B. Without preparing a schedule, what is the Cost of Good Manufactured for December 2011?
discuss stages of accounting for costs
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