Prob 4-30

Attached Excel Sheet for accounting

Section (a)

Problem 4-30 (Part Level Submission) ErgoFurn, Inc. manufactures ergonomically designed computer furniture. ErgoFurn uses a job order costing system. On Nove Work in Process Inventory consisted of the following jobs: Job No. Item Units CC723 Computer caddy 20,000 CH291 Chair 15,000 PS812 Printer stand 25,000 Accumulated Cost On November 30, ErgoFurn's Raw Materials Inventory account totaled $668,000, and its Finished Goods Inventory totaled $3 ErgoFurn applies manufacturing overhead on the basis of machine hours. The company's manufacturing overhead budget fo totaled $4,500,000, and the company planned to use 900,000 machine hours during the year. Through the first eleven mont the company used a total of 830,000 machine hours, total manufacturing overhead amounted to $4,274,500, and Cost of Go $8,750,250. ErgoFurn purchased $638,000 in raw materials in December and incurred the following costs for jobs in process that month: Materials Machine Direct Labor Issued Hours Hours Job No. CC723 $155,000 12,000 11,600 CH291 $13,800 4,400 3,600 PS812 $211,000 19,500 14,300 DS444 $252,000 14,000 12,500 The following jobs were completed in December and transferred to the Finished Goods Inventory: Job No. Item Units CC723 Computer caddy 20,000 CH291 Chair 15,000 DS444 Desk 5,000 Assume that ErgoFurn sold 15,000 computer caddies, 12,000 chairs, and 4,500 desks in December. (a) ErgoFurn incurred $395,000 in manufacturing overhead in December. Given that expenditure, was manufacturing overhead underor overapplied for the year? By how much? Overhead by $ a job order costing system. On November 30, the Accumulated Cost $900,000 431,000 250,000 $1,581,000 Finished Goods Inventory totaled $3,456,400. s manufacturing overhead budget for the year e year. Through the first eleven months of the year, ounted to $4,274,500, and Cost of Goods Sold was costs for jobs in process that month: Direct Labor Cost $122,400 $43,200 $200,500 $138,000 nventory: December