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		$10,000
Work in Process		$34,400
Finished Goods		$54,400

During September, the following events occurred:

1.		Swifty purchased direct materials costing $378,000 on account.
2.		Swifty used $370,000 in direct materials in production.
3.		Swifty’s employees clocked 20,000 direct labor hours at an average wage rate of $13 per direct labor hour.
4.		The company incurred $428,000 in manufacturing overhead, including $77,200 in indirect labor costs.
5.		Using direct labor hours as the application base, the company applied $420,000 of manufacturing overhead to jobs worked on in September.
6.		The company completed production on jobs costing $1,040,000.
7.		The company delivered jobs costing $990,000 to customers.

Calculate the ending September balance of the Direct Materials, Work in Process, and Finished Goods Inventory accounts. (I HAVE ALREADY DONE THIS PART!)

		Ending September Balance
Direct Materials		18,000
Work in Process		44,400
Finished Goods		104,400

Calculate total manufacturing costs for September.

Total manufacturing costs

(*note: I have already attempted this portion and got the answer $758,000 and it told me the answer was incorrect.)

Answer 1

	T- Accounts
	Direct materials
	BB	10,000	2)	370,000
	1)	378,000
	end bal	18,000
	Work in process inventory
	BB	34,400	6)	1,040,000
	2)	370,000
	3)	260000
	5)	420,000
	end bal	44,400
	finished goods inventory
	BB	54,400	7)	990,000
	6)	1,040,000
	End bal	104,400
1)				Ending sept balance
	Direct materials			18,000
	Work in process inventory			44,400
	Finished goods			104,400
2)	total manufacturing costs
	Direct materials			370,000
	direct labor			260000
	overhead applied			420,000
	total manufacturing costs			1,050,000	answer