Question

Required information [The following information applies to the questions displayed below.] Stellar Sound, Inc. which uses a job-order costing system, had two jobs in process at the start of 20x1: job no. 64 ($84,200) and job no. 65 ($53,500). The following information is available: a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $792,000, and 16,000 hours, respectively. b. The company worked on four jobs during the first quarter. Direct materials used, direct labor incurred, and machine hours consumed were as follows: Direct Material $21,000 Job No. 64 65 66 67 Direct Labor $35,000 22,000 65,000 8,800 Machine Hours 1,200 700 2,000 500 44,000 15,000 c. Manufacturing overhead during the first quarter included charges for depreciation ($32,900), indirect labor ($60,100), indirect materials used ($5,200), and other factory costs ($139,700). d. Stellar Sound completed job no. 64 and job no. 65. Job no. 65 was sold on account, producing a profit of $34,800 for the firm.

Can someone help me find the cost of jobs still in production as of March 31??

Ive seen multiple responses to this problem online that are incorrect

Answer 1

Stellar Sound Inc. 137700 Beginning work in process inventory ($84,200+$53,500) Add: Direct Materials (21000+44000+15000) 80000 Direct Labor (35000+22000+65000+8800) 130800 Manufacturing overhead applied (4,400 hours x $49.50/hour) 217800 Total work in process during March Deduct: Finished inventory Work in process balance, March 31 Job #66: $44,000+65,000+(2,000x49.50) Job #67: $15,000+8,800+(500x49.50) Total work in process during March 428600 566300 -309750 256550 208000 48550 256550 $792,000 = 16,000 machine hours = $49.50/machine hour 1200 + 700 + 2000 + 500 = 4400 #64: $84,200 (WIP at beginning of month)+$21,000+35,000+(1,200 x $49.50) = $199,600 #65: $53,500 (WIP at beginning of month)+$22,000+(700x$49.50) = $110,150 199600 + 110150 = 309750