Part E)

ErgoFurn, Inc. manufactures ergonomically designed computer furniture. ErgoFurn uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs ob No CC723 CH29 Chair PS812 Units Computer caddy 20,000 5,000 25,000 Item Accumulated Cost 900,000 31,000 250,000 Printer stand $1,581,000 On November 30, ErgoFurn's Raw Materials Inventory account totaled $668,000, and its Finished Goods Inventory totaled $3,456,400. ErgoFurn applies manufacturing overhead on the basis of machine hours. The company's manufacturing overhead budget for the year totaled $4,500,000, and the company planned to use 900,000 machine hours during the year. Through the first eleven months of the year, the company used a total of 830,000 machine hours, total manufacturing overhead amounted to $4,274,500, and Cost of Goods Sold was $8,750,250. For the pursposes of this problem, ignore year-end disposition of over / under applied overhead. ErgoFurn purchased $638,000 in raw materials in December and incurred the following costs for jobs in process that month: Materials Machine Direct Labor Direct Labor Job No. Issued $155,000 $13,800 Hours Hours Cost 11,600 3,600 14,300 12,500 $122,400 $43,200 $200,500 $138,000 CH291 4,400 PS812 $211,000 19,500 $252,000 14,000 DS444 The following jobs were completed in December and transferred to the Finished Goods Inventory: ob No. Item Units CC723 Computer caddy 20,000 15,000 5,000 CH291 Chair DS444Desk (a) Calculate the total cost of each of the four jobs worked on in December CC723 CH291 PS812 DS444 1237 510 Total Cost (b) Calculate the total manufacturing cost for December 1385 Total manufacturing cost (c) Calculate the cost of goods manufactured for December. 2207 Cost of goods manufactured (d) Calculate the balance in the Work in Process Inventory account on December 31 759 Balance in work in process (e) Assume that ErgoFurn sold 15,000 computer caddies, 12,000 chairs, and 4,500 desks in December. Calculate Cost of Goods Sold for the month of December and the ending Finished Goods Inventory balance on December 31. (For computation purpose round per unit rates to 2 decimal places, e.g. 3.54. Round final answers to 0 decmial places, e.g. 45,000.) Cost of goods sold Finished goods inventory 175005 457350