1. The Custom Manufacturing Company manufactures furniture. They have been in business for 10 years and are located in Edmonton, Alberta. The accountant prepares and reviews monthly information for the owners of the company. The following is financial company information for the month of August 2021.

• Raw materials inventory, ending $23,000, beginning $28,000
• Work in process inventory, ending $83,000, beginning $74,000
• Finished goods inventory, ending $23,000, beginning $20,000
• Total manufacturing cost $763,000
• Administration & Selling expenses $125,000
• Manufacturing overhead $72,000
• Direct labour hours worked 11,400 hours
• Direct labour incurred $340,000
• Sales $990,000

Instructions

a) Prepare a schedule of cost of goods manufactured for the month of August. Provide three examples of manufacturing overhead.

b) What is the August 31^st inventory balance of work in process?