Question

Coronado, Inc. manufactures ergonomically designed computer furniture. Coronado uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs:

Job No.		Item		Units		Accumulated Cost
CC723		Computer caddy		26,000			$970,000
CH291		Chair		19,000			434,000
PS812		Printer stand		29,000			268,000
							$1,672,000

On November 30, Coronado’s Raw Materials Inventory account totaled $686,000, and its Finished Goods Inventory totaled $3,476,400. Coronado applies manufacturing overhead on the basis of machine hours. The company’s manufacturing overhead budget for the year totaled $4,500,000, and the company planned to use 900,000 machine hours during the year. Through the first eleven months of the year, the company used a total of 830,000 machine hours, total manufacturing overhead amounted to $4,274,500, and Cost of Goods Sold was $8,750,250. For the pursposes of this problem, ignore year-end disposition of over / under applied overhead.

Coronado purchased $638,000 in raw materials in December and incurred the following costs for jobs in process that month:

Job No.		Materials Issued		Machine Hours		Direct Labor Hours		Direct Labor Cost
CC723		$169,000		16,000		14,600		$125,400
CH291		$19,100		5,000		4,000		$47,200
PS812		$229,000		22,000		18,300		$208,500
DS444		$260,000		14,000		17,800		$150,000

The following jobs were completed in December and transferred to the Finished Goods Inventory:

Job No.		Item		Units
CC723		Computer caddy		26,000
CH291		Chair		19,000
DS444		Desk		5,000

(a)	Calculate the total cost of each of the four jobs worked on in December.
	CC723 CH291 PS812 DS444 Total Cost $Enter a dollar amount Enter a dollar amount $Enter a dollar amount Enter a dollar amount $Enter a dollar amount Enter a dollar amount $Enter a dollar amount Enter a dollar amount

(b)	Calculate the total manufacturing cost for December.
	Total manufacturing cost $Enter total manufacturing cost in dollars Enter total manufacturing cost in dollars

(c)	Calculate the cost of goods manufactured for December.
	Cost of goods manufactured $Enter cost of goods manufactured in dollars Enter cost of goods manufactured in dollars

(d)	Calculate the balance in the Work in Process Inventory account on December 31.
	Balance in work in process $Enter the balance in work in process in dollars Enter the balance in work in process in dollars

(e)	Assume that Coronado sold 15,000 computer caddies, 12,000 chairs, and 4,500 desks in December. Calculate Cost of Goods Sold for the month of December and the ending Finished Goods Inventory balance on December 31. (For computation purpose round per unit rates to 2 decimal places, e.g. 3.54. Round final answers to 0 decmial places, e.g. 45,000.)
	Cost of goods sold $Enter cost of goods sold in dollars rounded to 0 decimal places Enter cost of goods sold in dollars rounded to 0 decimal places Finished goods inventory $Enter finished goods inventory in dollars rounded to 0 decimal places Enter finished goods inventory in dollars rounded to 0 decimal places

Answer 1

1
Overhead rate	4,500,000/900,000 machine hours
	5.00
	CC723	CH291	PS812	DS444	Total
Beginning Cost	970000	434000	268000		1672000
Direct Materials	169000	19100	229000	260000	677100
Direct Labor	125400	47200	208500	150000	531100
Overhead 16000*5,5000*5,22000*5,14000*5	80000	25000	110000	70000	285000
Total Cost	1344400	525300	815500	480000	3165200

b
Direct Materials used	677100
Direct Labor	531100
Overhead	285000
Total Manufacturing Costs	1493200

c
Cost of Goods Manufactured
	CC723	CH291	DS444	Total
Beginning Cost	970000	434000
Direct Materials	169000	19100	260000
Direct Labor	125400	47200	150000
Overhead	80000	25000	70000
Cost of Goods Manufactured	1344400	525300	480000	2349700

d
Balance in the Work in Process Inventory account on December 31	815500
e
	CC723	CH291	DS444	Total
Beginning Cost	970000	434000
Direct Materials	169000	19100	260000
Direct Labor	125400	47200	150000
Overhead	80000	25000	70000
Cost of Goods Manufactured	1344400	525300	480000	2349700
Units produced	26000	19000	5000
Cost per unit	51.71	27.65	96.00
Units sold	15000	12000	4500
Cost of Goods Sold	775615	331768	432000	1539384
Finished Inventory	568785	193532	48000	810316