Budgeted Actual Direct Labor Hours 10,000 11,000 Direct Labor cost $100,000 $110
ID: 2479395 • Letter: B
Question
Budgeted Actual
Direct Labor Hours 10,000 11,000
Direct Labor cost $100,000 $110,000
Overhead $100,000 $ 90,000
Administrative costs $ 50,000 $ 55,000
Other Information:
Beginning Raw Materials: $50,000
Beginning WIP (Job 1) $75,000
Beginning FG (Job X) $112,000
Raw Materials Purchases during the year - $450,000
Job Information (in no particular order)
Labor Hours Materials
Job1 900 $ 60,000
Job2 2,500 $125,000
Job3 1,400 $ 50,000
Job4 4,000 $125,000
Job5 900 $ 25,000
Job6 1,300 $ 90,000
Total 11,000 $475,000
Note: Jobs X,1,2 & 6 were sold for $850,000
Job 4 was completed but not sold at year end.
What are the ending balances of Raw Materials, Work-In-Process, and Finished Goods?
Explanation / Answer
1) Ending Balance of Raw material = Beginning balance + purchases - issued to production.
= 50000 + 450000 + 475000 = $25,000.
2) Ending balance of Work in process = Job 3 - 78000 + Job 5 - 43000 = $121,000.
3) Ending balance of Finished goods = Job 4 - 205,000 = $205,000.
Calculations are given below:
job 1 job 2 job 3 job 4 job 5 job 6 Total Beginning balance 75000 75000 labor cost @ $10 per hr 9000 25000 14000 40000 9000 13000 110000 material cost 60000 125000 50000 125000 25000 90000 475000 overhead applied @ $1/labor hr 9000 25000 14000 40000 9000 13000 110000 total cost 153000 175000 78000 205000 43000 116000 770000 Status at the end of the period trfd to trfd to wip trfd to wip trfd to finished finished finished finished goods goods goods goods & sold & sold & soldRelated Questions
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