Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Durango Company employs a job order cost accounting system and keeps perpetual inventory records. There was no work in process on December 1, 2020. Finished

image text in transcribed
Durango Company employs a job order cost accounting system and keeps perpetual inventory records. There was no work in process on December 1, 2020. Finished goods inventory consisted of Job 88, which cost $25,000. 1. Direct materials, labor and machine hours for the month: Direct Materials Machine Job No. Requisitioned Direct Labor Hours used 90 $ 15,000 $ 20,000 2,000 91 13,000 17,000 1,700 92 18,000 22.000 2,200 8,000 13,000 1,300 Total 54,000 $ 72,000 7,200 2. Manufacturing overhead was applied to jobs worked on using a predetermined overhead rate based on $5 per machine hour. 3. Actual manufacturing overhead costs incurred during the month amounted to $32,000. 4. Job 90, 91 and 93 consisting were completed during the month. 5. Jobs 88, 90, and 93 were sold on account for $145,000 Instructions: Answer the following questions. Show supporting computations to receive credit. 1. Compute the total cost of Jobs 90, 91 and 93. 93 $ 2. Compute the amount overhead applied to job 92. 3. Determine the balance in Work-in-Process Inventory at the end of the month. 4. Determine the balance in Finished Goods Inventory at the end of the month

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions