Question

Problem 4-28 Bramble, Inc. manufactures ergonomically designed computer furniture. Bramble 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 22,000 18,000 30,000 Accumulated Cost $1,000,000 435,000 274,000 $1,709,000 On November 30, Bramble's Raw Materials Inventory account totaled $668,000, and its Finished Goods Inventory totaled $3,496,400. Bramble applies manufacturing overhead on the basis of machine hours. The company's manufacturing overhead budget for the year totaled $4,650,000, and the company planned to use 930,000 machine hours during the year. Through the first eleven months of the year, the company used a total of 900,000 machine hours, total manufacturing overhead amounted to $4,284,500, and Cost of Goods Sold was $8,770,250. For the pursposes of this problem, ignore year-end disposition of over / under applied overhead. Bramble purchased $638,000 in raw materials in December and incurred the following costs for jobs in process that month: Job No. CC723 CH291 PS812 DS444 Materials Issued $171,000 $14,000 $223,000 $256,000 Machine Hours 13,000 4,800 21,100 18,000 Direct Labor Hours 13,100 3,700 17,300 15,600 Direct Labor Cost $123,400 $43,200 $222,500 $138,000 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 22,000 18,000 5,000

Answer 1

(a)

	CC723	CH291	PS812	DS444
Beginning Cost	$    1,000,000	$       435,000	$    274,000
Direct Materials	$        171,000	$         14,000	$    223,000	$ 256,000
Direct Labor	$        123,400	$         43,200	$    222,500	$ 138,000
Overhead	$          65,000	$         24,000	$    105,500	$     90,000
Total Cost	$    1,359,400	$       516,200	$    825,000	$ 484,000

(b) Total Manufacturing costs for December

Direct Materials used	$        664,000
Direct Labor	$        527,100
Overhead	$        284,500
Total Manufacturing Costs	$    1,475,600

(c) Cost of Goods Manufactured = $1359400+516200+484000 = $2359600

(d) Work in process inventory = $825000

(e)

	CC723	CH291	DS444
Beginning Cost	$    1,000,000	$       435,000
Direct Materials	$        171,000	$         14,000	$    256,000
Direct Labor	$        123,400	$         43,200	$    138,000
Overhead	$          65,000	$         24,000	$      90,000
Total Cost	$    1,359,400	$       516,200	$    484,000
Units produced	22000	18000	5000
Cost per unit	$            61.79	$           28.68	$        96.80
Units sold	15000	12000	4500
Cost of Goods Sold	$        926,864	$       344,133	$    435,600	$   1,706,597
Finished Inventory	$        432,536	$       172,067	$      48,400	$       653,003