Question
Waterway, Inc. manufactures ergonomically designed computer furniture. Waterway uses a job order costing system. On November 30, the Work in Process Inventory consisted of
Waterway, Inc. manufactures ergonomically designed computer furniture. Waterway uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs: Job No. Item Units Accumulated Cost CC723 Computer caddy 15,000 $500,000 CH291 Chair 10,000 246,850 PS812 Printer stand 17.000 133.000 $879.850 On November 30, Waterway's Direct Materials Inventory account totaled $122,000, and its Finished Goods Inventory totaled $532,000. Waterway applies manufacturing overhead on the basis of machine hours. The company's manufacturing overhead budget for the year totaled $2,184,000, and the company planned to use 168.000 machine hours during the year. Through the first eleven months of the year, the company used a total of 118,000 machine hours, total manufacturing overhead amounted to $1,818,700, and Cost of Goods Sold was $4,680,000. Waterway purchased $638,000 in direct materials in December and incurred the following costs for jobs in process that month:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started