Finlon Upholstery, Inc., uses a job-order costing system to accumulate manufacturing costs. The company's work-in-process on December 31, 20x1, consisted of one job (no. 2077),
Finlon Upholstery, Inc., uses a job-order costing system to accumulate manufacturing costs. The company's work-in-process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor hours, multiplied by the budgeted direct-labor rate.) Budgeted totals for 20x2 for direct labor and manufacturing overhead are $4,200,000 and $5,544,000, respectively. Actual results for the year follow. Direct material used $ 5,550,000 Direct labor 4,350,000 Indirect material used 63,000 Indirect labor 2,860,000 Factory depreciation 1,740,000 Factory insurance 58,000 Factory utilities 828,000 Selling and administrative expenses 2,160,000 Total $17, 609,000 Job no. 2077 was completed in January 20x2; there was no work in process at year-end. All jobs produced during 20x2 were sold with the exception of job no. 2143, which contained direct-material costs of $154,000 and direct-labor charges of $85,000. The company charges any under- or overapplied overhead to Cost of Goods Sold.\f2. Determine the additions to the Work-in-Process Inventory account for direct material used, direct labor, and manufacturing overhead. Additions to the work-in-process inventory3. Compute the amount that the company would disclose as finished-goods inventory on the December 31, 20x2, balance sheet. Finished-goods inventory4. Prepare the journal entry needed to record the year's completed production. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record transfer of job cost from work in process to finished goods inventory. Note: Enter debits before credits. Transaction No journal entry required Debit Credit 1 Accounts payable Accounts receivable Accumulated depreciation Cash5-a. Compute the amount of under- or overapplied overhead at year-end. 5-b. Prepare the necessary journal entry to record its disposition. Complete this question by entering your answers in the tabs below. Reg 5A Req 50 Compute the amount of under- or overapplied overhead at year-end. 5-a. Compute the amount of under- or overapplied overhead at year-end. 5-b. Prepare the necessary journal entry to record its disposition. Complete this question by entering your answers in the tabs below. Reg 5A Reg 58 Prepare the necessary journal entry to record its disposition. (If no entry is required for a transaction/event, select "N required" in the first account field.) View transaction list Journal entry worksheet Record under- or over applied overhead. Note: Enter debits before credits. Transaction General Journal Debit Credit 16. Determine the company's 20x2 cost of goods sold. Finished-goods inventory, Jan. 1 Cost of goods available for sale Unadjusted cost of goods sold Cost of goods sold7. Would it be appropriate to include selling and administrative expenses in either manufacturing overhead or cost of goods sold? O Yes O No
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