Question
Required information [The following information applies to the questions displayed below.] Finlon Upholstery, Inc. uses a job-order costing system to accumulate manufacturing costs. The company's
Required information
[The following information applies to the questions displayed below.]
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 $5,460,000, respectively. Actual results for the year follow.
Direct material used$5,550,000Direct labor4,350,000Indirect material used64,000Indirect labor2,860,000Factory depreciation1,740,000Factory insurance59,000Factory utilities830,000Selling and administrative expenses2,160,000Total$17,613,000
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 $155,000 and direct-labor charges of $85,000. The company charges any under- or overapplied overhead to Cost of Goods Sold.
2.Determine the additions to the Work-in-Process Inventory account for direct material used, direct labor, and manufacturing overhead.
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