Question

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

Direct Materials $25,500

Work in Process $153,000

Finished Goods

$261,000

During September, the following events occurred:

Sheffield purchased direct materials costing $2,824,000 on account.

2. Sheffield used $436,000 in direct materials in production.

3. Sheffield’s employees clocked 20,000 direct labor hours at an average wage rate of $11.17 per direct labor hour.

4. The company incurred $184,000 in manufacturing overhead, including $25,000 in indirect labor costs.

5. Using direct labor hours as the application base, the company applied $164,000 of manufacturing overhead to jobs worked on in September.

6. The company completed production on jobs costing $859,000.

7. The company delivered jobs

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

Work in Process $Enter a dollar amount

Finished Goods $Enter a dollar amount

Calculate total manufacturing costs for September.

Total manufacturing costs

$Enter totalmanufacturing costs in dollars

Answer 1

- Calculation of Direct Material Openining Direct Material 25,350 Add ? Direct Material Purchased during the yew 28,29, TOU 28 49.500 len! Direct Material Used in the production Process (436000) Closing Direct Material 24,13,500 COST SHEET ( Direet Material 436000 Direct Labous 1 20,000 n 11-17 223400 Prime Cost 659 Yoo Add: Manu facturing Overhemde (18Y070-23000) 159000 Indirect labous 2 STTO A Work Cost 843 400 Add! Opening Working in process 153000 996 406 less. Closing Work in Prours. (184000 164000) 20,000 Manufacturing Cost 976400 000 Oto Bechero 08.000 Add! Opening Finished Goods 261010 37 YOO Con! Closing finised Goods. 378400 eur 859Ovo Company Completed Production On Job. 2 closing Work in Process $ 20,000 ( closing finished Goods $378 400 Total Manufacturing Cost $ 976400 -