Question

Swifty Fabricators produces protective covers for smart phones. Since the covers must be customized to each smart phone model, Swifty uses a job order costing system. On September 1, the company reported the following inventory balances:

Direct Materials		$31,500
Work in Process		$152,000
Finished Goods		$260,000

During September, the following events occurred:

1.		Swifty purchased direct materials costing $3,708,000 on account.
2.		Swifty used $432,000 in direct materials in production.
3.		Swifty’s employees clocked 22,000 direct labor hours at an average wage rate of $13.23 per direct labor hour.
4.		The company incurred $182,000 in manufacturing overhead, including $18,000 in indirect labor costs.
5.		Using direct labor hours as the application base, the company applied $166,000 of manufacturing overhead to jobs worked on in September.
6.		The company completed production on jobs costing $858,000.
7.		The company delivered jobs costing $1,078,000 to customers.

Calculate the ending September balance of the Direct Materials, Work in Process, and Finished Goods Inventory accounts.

		Ending September Balance
Direct Materials		$Enter a dollar amount Enter a dollar amountEnter a dollar amountEnter a dollar amount
Work in Process		$Enter a dollar amount Enter a dollar amountEnter a dollar amountEnter a dollar amount
Finished Goods		$Enter a dollar amount Enter a dollar amountEnter a dollar amountEnter a dollar amount

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Calculate total manufacturing costs for September.

Total manufacturing costs

$Enter total manufacturing costs in dollars Enter total manufacturing costs in dollarsEnter total manufacturing costs in dollarsEnter total manufacturing costs in dollars

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

Answer Part 1) Ending Direct Material inventory = Beginning inventory + purchases - used in production = 31500+3708000-432000 = $ 3307500 Ending work in process = beginning work in process + direct material used + direct labour + manufacturing overheads applied - cost of goods manufactured = 152000+432000+(22000*13.23)+166000-858000 | = $ 183060 Ending Finished Goods inventory = beginning inventory + cost of goods manufactured - cost of goods sold = 260000+858000-1078000 = $ 40000 Thus the final answer Direct Material 3307500 Ending Inventory 183060 Finished goods 40000 Part 2) Total Manufacturing Cost direct material used + direct labour + manufacturing overheads applied = 432000+(22000*13.23)+166000 = $ 889060 Thus the correct answer total manufacturing cost = $ 889060