TruCut Mower Company manufactures a variety of gasoline-powered mowers for discount hardware and department stores. TruCut uses a job cost system and treats each customer's order as a separate job. The primary mower components (motors, chassis, and wheels) are purchased from three different suppliers under long-term contracts that call for the direct delivery of raw materials to the production floor as needed. When a customer's order is received, a raw materials purchase order is electronically placed with suppliers. The purchase order specifies the scheduled date that production is to begin as the delivery date for motors and chassis; the scheduled date production is to be completed is specified as the delivery date for the wheels. As a consequence, there are no raw materials inventories; raw materials are charged directly to Work-in-Process upon receipt. Upon completion, goods are shipped directly to customers rather than transferred to finished goods inventory. At the beginning of July 2009, TruCut had the following work-in-process inventories: During July, the following activities took place: Started Jobs 369, 370, and 371. Ordered and received the following raw materials for specified jobs: Incurred July manufacturing payroll: Incurred additional manufacturing overhead costs for July: Applied manufacturing overhead using a predetermined rate based on predicted annual overhead of SI90,000 and predicted annual direct labor of $200,000. Completed and shipped Jobs 365 through 370. Required Prepare a complete analysis of all activity in Work-in-Process. Be sure to show the beginning and ending balances, all increases and decreases, and label each item. Provide support information on decreases with job cost sheets TruCut Mower Company manufactures a variety of gasoline-powered mowers for discount hardware and department stores. TruCut uses a job cost system and treats each customer's order as a separate job. The primary mower components (motors, chassis, and wheels) are purchased from three different suppliers under long-term contracts that call for the direct delivery of raw materials to the production floor as needed. When a customer's order is received, a raw materials purchase order is electronically placed with suppliers. The purchase order specifies the scheduled date that production is to begin as the delivery date for motors and chassis; the scheduled date production is to be completed is specified as the delivery date for the wheels. As a consequence, there are no raw materials inventories; raw materials are charged directly to Work-in-Process upon receipt. Upon completion, goods are shipped directly to customers rather than transferred to finished goods inventory. At the beginning of July 2009, TruCut had the following work-in-process inventories: During July, the following activities took place: Started Jobs 369, 370, and 371. Ordered and received the following raw materials for specified jobs: Incurred July manufacturing payroll: Incurred additional manufacturing overhead costs for July: Applied manufacturing overhead using a predetermined rate based on predicted annual overhead of SI90,000 and predicted annual direct labor of $200,000. Completed and shipped Jobs 365 through 370. Required Prepare a complete analysis of all activity in Work-in-Process. Be sure to show the beginning and ending balances, all increases and decreases, and label each item. Provide support information on decreases with job cost sheets
