Posting Direct Materials, Direct Labor, and Applied Overhead to T-Accounts, Calculating Ending Balances
Stone Creek Furniture Factory (SCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, SCFF had two jobs in process with the following costs:
Work in Process | Balance on 3/1 |
Job 33 | $5,000 |
Job 34 | 4,000 |
| $9,000 |
Source documents revealed the following during March:
| Materials Requisitions Forms | Labor Time Tickets | Status of Job at Month-End |
Job 33 | $ 3,000 | $ 5,000 | Completed and sold |
Job 34 | 3,000 | 4,000 | Completed, but not sold |
Job 35 | 4,000 | 3,000 | In process |
Indirect | 1,000 | 2,000 |
|
| $11,000 | $14,000 |
|
The company applies overhead to products at a rate of 75 percent of direct labor cost.
Required:
1.Compute the cost of Jobs 33, 34, and 35 at the end of the month.
2. Calculate the balance in the Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts at month-end.
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