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CompuFurn, Inc., manufactures furniture for computer work stations. CompuFurn uses a job-order costing system and employs absorption costing. ComuFurns work-in-process inventory on November 30 consisted
CompuFurn, Inc., manufactures furniture for computer work stations. CompuFurn uses a job-order costing system and employs absorption costing. ComuFurns work-in-process inventory on November 30 consisted of the following jobs. Job No. Description Units Accumulated Cost CC723 Computer caddy 20,000 $ 900,000 CH291 Chair 15,000 431,000 PS812 Printer stand 25,000 260,000 Total $ 1,591,000 On November 30, the companys finished-goods inventory, which is evaluated using the first-in, first-out (FIFO) method, consisted of four items. Item Quantity and Unit Cost Accumulated Cost Computer caddy 7,500 units @ $ 64 each $ 480,000 Chair 19,400 units @ $ 35 each 679,000 Printer stand 21,000 units @ $ 55 each 1,155,000 Desk 11,200 units @ $ 102 each 1,142,400 Total $ 3,456,400 At the end of November, the balance in CompuFurns Materials Inventory account, which includes both raw materials and purchased parts, was $668,000. Additions to and requisitions from the materials inventory during the month of December included the following. Additions Raw Materials Purchased Parts Purchases $ 242,000 $ 396,000 Requisitions: Job CC723 51,000 104,000 Job CH291 3,000 10,800 Job PS812 124,000 87,000 Job DS444 (5,000 desks) 65,000 187,000 CompuFurn applies manufacturing overhead on the basis of machine hours. The companys manufacturing overhead budget for the year totaled $4,500,000. The company planned to use 900,000 machine hours during this period, which is the firms estimated practical capacity. Through the first 11 months of the year, a total of 831,000 machine hours were used, and actual manufacturing overhead amounted to $4,140,000. During the month of December, machine hours and labor hours consisted of the following: Account Machine Hours Labor Hours Labor Cost CC723 12,000 11,600 $ 122,400 CH291 4,400 3,600 43,200 PS812 19,500 14,300 200,600 DS444 14,000 12,500 138,000 Indirect labor 3,000 29,400 Supervision 57,600 Total 49,900 45,000 $ 591,200 The jobs completed in December and the unit sales for that month are as follows: Job No. Production Items Quantity Completed Item Quantity Shipped CC723 Computer caddy 20,000 Computer caddy 17,500 CH291 Chair 15,000 Chair 21,100 DS444 Desks 5,000 Printer stand 18,000 Desk 6,000 Case 3-61 Part 2 2. Calculate the dollar balance in CompuFurns Work-in-Process Inventory account as of December 31
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