Question
Bonita Fabricators produces protective covers for smart phones. Since the covers must be customized to each smart phone model, Bonita uses a job order costing
Bonita Fabricators produces protective covers for smart phones. Since the covers must be customized to each smart phone model, Bonita uses a job order costing system. On September 1, the company reported the following inventory balances: Direct Materials $31,100 Work in Process $148,000 Finished Goods $260,000
During September, the following events occurred: 1. Bonita purchased direct materials costing $428,000 on account. 2. Bonita used $436,000 in direct materials in production. 3. Bonitas employees clocked 21,000 direct labor hours at an average wage rate of $13.86 per direct labor hour. 4. The company incurred $185,000 in manufacturing overhead, including $25,000 in indirect labor costs. 5. Using direct labor hours as the application base, the company applied $166,000 of manufacturing overhead to jobs worked on in September. 6. The company completed production on jobs costing $853,000. 7. The company delivered jobs costing $1,075,000 to customers.
1) Calculate the ending September balance of the Direct Materials, Work in Process, and Finished Goods Inventory accounts.
2) Calculate total manufacturing costs for September.
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