Question
Fun Corp makes playgrounds for schools and day care centers. At the end of May, the total ending balance of work in process inventory account
Fun Corp makes playgrounds for schools and day care centers. At the end of May, the total ending balance of work in process inventory account was $14,670 comprising of three unfinished jobs, Job# 56 with $4,200 in materials and 15 hours worked; job # 58 with $6,470 in materials and 18 hours worked; and last it had job #61 with $1,540 in materials and 8 hours worked. The total of cost of goods sold for the month was $15,330. The company had no inventory left in the finished goods account. Fun pays its workers $20 an hour and overhead is 200% of total labor cost paid. Manufacturing overhead for May was overallocated by $1,200. What is the adjusted ending balance for Job #58 if the overallocated amount is disposed of by prorating using ending balances?
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