Answer 1. | ||
A Job order costing system is appropriate in any environment where costs can be readily identified with specific products, batches, contracts or projects. | ||
Answer 2. | ||
WIP - Dec-31 - DRS114 | ||
DRS114 Balance - Nov 30 | 250,000.00 | |
December Additions: | ||
Direct Material | 124,000.00 | |
Purchased Parts | 87,000.00 | |
Direct Labor | 200,500.00 | |
Manufacturing Overhead - 19,500 hrs X $7.50 | 146,250.00 | 557,750.00 |
WIP Inventory, Dec 31 | 807,750.00 | |
Pre-determined Overhead Rate = $4,500,000 / 600,000 Hours = $7.50 per hour | ||
Pre-determined Overhead Rate = $7.50 per hour | ||
Answer 3. | ||
Finished Goods Inventory - Playpens - Dec 31 | ||
Units | ||
Beginning Inventory - Nov 30 | 19,400.00 | |
Units Completed in December | 15,000.00 | |
Units Available for Sale | 34,400.00 | |
Units Shipped in December | 21,000.00 | |
Finished Goods Inventory - Playpens - Dec 31 | 13,400.00 | |
Since, KIDCo uses FIFO Method, all units in Finished Goods Inventory were completed in December. | ||
Units Cost per Playpen: | ||
WIP - Nov 30 | 420,000.00 | |
December Additions: | ||
Direct Material Used | 3,000.00 | |
Purchased Parts | 10,800.00 | |
Direct Labor | 43,200.00 | |
Manuafacturing Overhead - 4,400 Hrs X $7.50 | 33,000.00 | 90,000.00 |
Total Costs | 510,000.00 | |
Units Completed | 15,000.00 | |
Cost per Unit - $510,000 / 15,000 Units | 34.00 | |
Value of Finished Goods = $34 X 13,400 Units | ||
Value of Finished Goods = $455,600 |
cnaaren's furnishings. The company uses a job-order costing system, Kidco's work-in-process inventory at the end or...
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