Question

In: Accounting

Thing Co. uses a job order costing system. At the beginning of July, the company had...

Thing Co. uses a job order costing system. At the beginning of July, the company had the following job in progress:

Job 70

$16539


During July, Thing Co. incurred the following job related costs:

Direct Materials

Direct Labour

Job 70

$2740

$1163

Job 80

12316

16294

Job 90

8248

7908


Manufacturing overhead is applied at a rate of $3.79 per $1 of direct labour cost. Jobs 70 and 90 were moved to finished goods during the month, but neither was sold by the end of the month. Job 80 is still in progress.

What would the debit to Finished Goods Inventory be for the month of July?

Select one:

a. $36598

b. $115214

c. $70977

d. $54438

Solutions

Expert Solution

Job 70 Job 90
Opening work in process $                                 16,539
Add: Direct material added during the month $                                    2,740 $                                      8,248
Add: Direct labour added during the month $                                    1,163 $                                      7,908
Add: Manufacturing overhead applied during the month $3.79*$1,163 = $4,407.77 $3.79*$7,908 = $29,971.32
Total manufacturing cost $                           24,849.77 $                              46,127.32
Debit finished good inventory $ 70,977.09
Credit work in process inventory - Job 70 $ 24,849.77
Credit work in process inventory - Job 90 $ 46,127.32

Answer is: c. $70,977

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Landen Corporation uses a job-order costing system. At the beginning of the year, the company made...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production 140,000 Machine-hours required to support estimated production 70,000 Fixed manufacturing overhead cost $ 784,000 Variable manufacturing overhead cost per direct labor-hour $ 2.00 Variable manufacturing overhead cost per machine-hour $ 4.00 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials $ 175...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates Direct labor-hours required to support estimated production 80,000 Machine-hours required to support estimated production 40,000 Fixed manufacturing overhead cost $ 240,000 Variable manufacturing overhead cost per direct labor-hour $ 1.80 Variable manufacturing overhead cost per machine-hour $ 3.60 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials $ 207...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production 100,000 Machine-hours required to support estimated production 50,000 Fixed manufacturing overhead cost $ 280,000 Variable manufacturing overhead cost per direct labor-hour $ 2.80 Variable manufacturing overhead cost per machine-hour $ 5.60 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials $ 216...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production 120,000 Machine-hours required to support estimated production 60,000 Fixed manufacturing overhead cost $ 336,000 Variable manufacturing overhead cost per direct labor-hour $ 3.60 Variable manufacturing overhead cost per machine-hour $ 7.20 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials $ 206...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production 110,000 Machine-hours required to support estimated production 55,000 Fixed manufacturing overhead cost $ 308,000 Variable manufacturing overhead cost per direct labor-hour $ 3.20 Variable manufacturing overhead cost per machine-hour $ 6.40 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials $ 187...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production 95,000 Machine-hours required to support estimated production 47,500 Fixed manufacturing overhead cost $ 266,000 Variable manufacturing overhead cost per direct labor-hour $ 2.60 Variable manufacturing overhead cost per machine-hour $ 5.20 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials $ 273...
ABC Company uses a job order costing system and had three jobs in process at the...
ABC Company uses a job order costing system and had three jobs in process at the beginning of the month. The beginning balance in the WIP account was $145,400, made up of $42,400, $65,100, and $37,900 as shown on the cost sheets for Jobs 921, 922, and 923 respectively. During the month, ABC added the following materials and labor costs to each job. Inventory Materials used for Month Labor Dollars used for Month Job 921 12,200 30,000 Job 922 13,400...
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year,...
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company’s inventory balances were as follows:      Raw materials $ 25,500   Work in process $ 13,800   Finished goods $ 31,900 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 37,900 machine-hours and incur $151,600 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials...
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year,...
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company’s inventory balances were as follows:      Raw materials $ 17,500   Work in process $ 9,760   Finished goods $ 29,280 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,300 machine-hours and incur $159,720 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials...
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year,...
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company’s inventory balances were as follows:      Raw materials $ 17,500   Work in process $ 9,760   Finished goods $ 29,280 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,300 machine-hours and incur $159,720 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT