Just Kids, Inc., manufactures furnishings for children. The company uses a job-order costing system.

a Job-Order Costing System Phe company’s work-in-process inventory on November 30 consisted of the following jobs.

(LO 2,3,5,6)

Job No. Description Units Accumulated Cost SB SiO2 eeere terete Cribs....tadiitmee etneee: 20000 s%.cet iat eee $ 900,000 PEROSGse ectee senor wtncerat EALEOWleYf i staenare none Meeebe re: 13, QOOK ec veers carreras —$420,000 DURST a Bap adooeeeeseseansocasbesroas BYR ESISNETS ire ancteseerocencacatersocee PASH\01|0O p eatcbrephostions cescbosesu 250,000 HOBIE oy tat nen eae clon Oumaiand cbocetiaun tes crete oe . $1,570,000 The company’s November 30 finished-goods inventory, which is valued using the FIFO (first-in, first-out) method, consisted of five items.

Item Quantity and Unit Cost Accumulated Cost

(CRIS ah Lee wtaned, wane, mayen T,SOOUMISIO S64 Cache $ 480,000 StrOllerseey: Aa ee eee IS;OOOMUMISI@ S2iICaCH cess seeertes e ee 299,000 GawnlaGgesiercwcnc neces lis 2ZOOMUNItS @G1O2ZCachie aaa eee 1,142,400 Dressers Seea eee ZAOOOMUMISI@: SSSiICACH ican ee eee eee 1,155,000 PIAPVDC M Sieteersinancsenssmseceee 1D 4OOUNIIS @SSSeachiiee see eee eee 679,000 TOTALS SEEN EE NER RE Re: Meee cee ete We oe ek $3,755,400 Just Kids applies manufacturing overhead on the basis of direct-labor hours. The company’s over-

& “ 52 head budget for the year totals $4,500,000, and the company plans to use 600,000 direct-labor hours 90 aa Ya during this period. Through the first 11 months of the year, a total of 555,000 direct-labor hours were 6 AU) 7) We worked, and total overhead amounted to $4,273,500.

ee At the end of November, the balance in the Raw-Material Inventory account, which includes both

\y ot raw material and purchased parts, was $668,000. Additions to inventory and requisitions from inventory during December included the following.

Purchases.........:.. PINs. MET jE T Hee BOR. AY AAR OOOTI ee

a. ok. $396,000 Requisitions:
Job CBS IU2\ ewe re een te ah ers Job PLPO86....\... Beg ca.il Me eggep HOG hel nama ieee te 10,800 NOB DRG Taekc Gee Meem e a ee 87,000 >
Job STRO77 (10,000 strollers) :..cccccscececeees C2 Oenchaincwmr skess:. 81,000 Job CRG098 (5,000 carriages)... COMODO Re teresvnca st h ane 187,000 During December, the factory payroll consisted of the following:
CLS OG Land Oe eee eRe EE UZOOOMM Ayciunsccvar reenecusreen $122,400 PLPos6 | pepalit Be i EA CLO. ne 43,200 HRA GE At at Oi ele amet a CAB BOONE sere <200,500>
SURO cecetccreee Soetonceo srS teeor cae SHOOOM Gee ccucbesa leee 30,000 GG OOS he weetemacty fatstaed cues paeeakes hake acs AAROOOs ee eG enemas tthe 138,000 (RGN eto) i eleY eleReae emma cnet crenata ats RSO OO AIS. See eee 29,400 STIOCINIOSl merece arene cnet a en mEtine Vewtat ieAm ed eS Ld hu, eset a 57,600 ‘UCL scissnseabae Se on suntana tee aota nge eee aR Eee aU eR Re rac nS Nee an $621,100 The following list shows the jobs that were completed and the unit sales for December.
Production Sales Job No. Items Quantity Completed Items Quantity Shipped be, CBSI02—"5.... GniDSte we mane 20,000 Gillet pecnavetevesborboece 17,500 periie | PLPOSEc.. Playpens... PlayPens 0... & 21,000 SMAOR/ ce SirollenStacaerence rn 10,000 StTOlerSeaee cen 14,0 CRGOQ8B.......... Carriages... 5,000 DIeSSEFS vo... cece 18,000 Canilage seer 6,000 Required

a. Explain when it is appropriate for a company to use a job-order costing system.

b. Calculate the dollar balance in the Work-in-Process slavery account as of December 31.

c. Calculate the dollar amount related to thelaypens } the Finished-Goods Inventory account as of December 31.