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QUESTION 1: Mia Manufacturing produces protective covers for eBook Readers. Since the covers must be customized to each eBook Readers model, Mia uses a job
QUESTION 1: Mia Manufacturing produces protective covers for eBook Readers. Since the covers must be customized to each eBook Readers model, Mia uses a job order costing system. On October 1, the company reported the following inventory balances (tip - these are the beginning balances in the accounts): Raw Materials: $30,000, Work in Process: $145,000 and Finished Goods: $250,000 During October, the following events occurred: A. Mia purchased materials costing $410,000 on account. B. Mia used $425,000 in direct materials in production. C. Mia's employees clocked 17,000 direct labor hours for a total of $170,000. D. The company incurred $169,000 in manufacturing overhead, which included $20,000 in indirect labor costs. E. Using DL hours as the cost driver, the company applied $162,000 of manufacturing overhead to jobs worked on in October. F. The company completed production on jobs costing $860,000. G. The company sold and delivered jobs costing $1,000,000 to customers
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