Sheridan, Inc. manufactures ergonomically designed computer furniture. Sheridan uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs: Job No. CC723 CH291 PS812 Item Computer caddy Chair Printer stand Units 23,000 20,000 28,000 Accumulated Cost $940,000 431,000 268,000 $1,639,000 On November 30, Sheridan's Raw Materials Inventory account totaled $694,000, and its Finished Goods Inventory totaled $3,456,400. Sheridan applies manufacturing overhead on the basis of machine hours. The company's manufacturing overhead budget for the year totaled $4,950,000, and the company planned to use 990,000 machine hours during the year. Through the first eleven months of the year, the company used a total of 840,000 machine hours, total manufacturing overhead amounted to $4,274,500, and Cost of Goods Sold was $8,760,250. For the pursposes of this problem, ignore year-end disposition of over / under applied overhead. Sheridan purchased $648,000 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 Hours Hours Cost CC723 $190,000 12,000 12,300 $126,400 CH291 $17,700 4,500 3,600 $49,200 PS812 $237,000 24,100 17,300 $223,500 DS444 $260,000 14,000 18,700 $148,000 The following jobs were completed in December and transferred to the Finished Goods Inventory: Job No. CC723 CH291 DS444 Item Computer caddy Chair Desk Units 23,000 20.000 9,000 (a) Calculate the total cost of each of the four jobs worked on in December CC723 CH291 $ $ $ Total Cost PS812 DS444 $ Job No. CC723 CH291 DS444 Item Computer caddy Chair Desk Units 23,000 20,000 9,000 (a) Calculate the total cost of each of the four jobs worked on in December. CC723 CH291 $ PS812 DS444 $ $ Total Costs (b) Calculate the total manufacturing cost for December. $ Total manufacturing cost (c) Calculate the cost of goods manufactured for December. Cost of goods manufactured (d) Calculate the balance in the Work in Process Inventory account on December 31. Balance in work in process (e) Assume that Sheridan 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, eg. 3.54. Round final answers to decmial places, eg. 45,000.) $ Cost of goods sold Finished goods inventory
