Question

Question 2 x Your answer is incorrect. Try again. Sunland, Inc. manufactures ergonomically designed computer furniture. Sunland uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs: Job No. CC723 CH291 PS812 Item Computer caddy Chair Printer stand Units 24,000 15,000 30,000 Accumulated Cost $900,000 435,000 285,000 $1,620,000 On November 30, Sunland's Raw Materials Inventory account totaled $680,000, and its Finished Goods Inventory totaled $3,456,400. Sunland 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 870,000 machine hours, total manufacturing overhead amounted to $4,284,500, and Cost of Goods Sold was $8,790,250. For the pursposes of this problem, ignore year-end disposition of over / under applied overhead. Sunland purchased $648,000 in raw materials in December and incurred the following costs for jobs in process that month: Job No. CC723 CH291 PS812 DS444 Materials Issued $200,000 $16,200 $218,000 $254,000 Machine Hours 19,000 4,800 25,000 20,000 Direct Labor Hours 12,600 3,600 15,300 20,000 Direct Labor Cost $125,400 $48,200 $209,500 $149,000 The following jobs were completed in December and transferred to the Finished Goods Inventory: Job No. CC723 CH291 DS444 Item Computer caddy Chair Desk Units 24,000 15,000 8,000

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

Answer Requirement 1) CC 723 900000 200000 125400 CH 291 435000 16200 48200 PS8121 DS444 285000 218000 254000 209500 149000 Beginning inventory Material Issued Direct Labour Manufacturing Overheads (overhead rate per machine hour = $ 5 (5000000/1000000) Total cost 95000 24000 125000 100000 1320400 5234001 837500 503000 Thus the final answer is CC 723 CH 291 P5812 DS444 1320400 523400 837500 503000 Total cost - Requirement 2) - Total manufacturing cost = total cost of all jobs - beginning inventory = (1320400-523400+837500+503000) - 1620000 = $ 1564300 Thus the correct answer is $ 1564300 Requirement 3) Cost of goods manufactured=total cost including beginning inventory - ending wip (PS812) -= (1320400+523400+837500+503000) - 837500 - = $ 2346800 Thus the correct answer is $2346800

28 Requirement 4) 29 Balance in work in process = cost of job (PS812) 30 = $ 837500 31 Thus the correct answer is $ 837500 33 Requirement 5) 34 Cost of goods sold 35 = units sold cost per unit of repective item 36 = ( 15000*(1320400/24000))+(12000*(523400/15000)+(4500*(503000/8000)) 37 = ( 15000*55.02)+(12000*34.89)+(4500*62.88) 38 = $ 1526940 40 Finished goods inventory 41 = beginning inventory + cost of goods manufactured - cost of goods sold 42 = $ 3456400 + 2346800 - 1526940 43 = $4276260 44 45 Thus the final answer is 46 Cost of goods sold = $ 1526940 47 Finished goods = $ 4276260 48 49 Note 50 If we don't round off the intermediate calculations 51 Cost of goods sold will be $ 1526908 52 Finished goods sold = $ 4276292