Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job or

ID: 2606187 • Letter: O

Question

Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs:

Work in process balnce on 3/1

Job 33 4000

Job 34 5000

total: 9000

The company applies overhead to products at a rate of 50 percent of direct labor cost.

Required:

1.  Compute the cost of Jobs 33, 34, and 35 at the end of the month.

Total Maufacturing Cost

Job 33 =

Job 34 =

Job 35 =

2. Calculate the balance in the Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts at month-end.

Work in Process Inventory =

Finshed Goods Inventory =

Cost of Goods Sold =

Materials Requisitions Forms Labor Time Tickets Status of Job at Month-End Job 33 $ 3,400 $ 4,700 Completed and sold Job 34 3,500 4,600 Completed, but not sold Job 35 3,200 2,800 In process Indirect 800 2,600 $ 10,900 $ 14,700

The company applies overhead to products at a rate of 50 percent of direct labor cost.

Required:

1.  Compute the cost of Jobs 33, 34, and 35 at the end of the month.

Total Maufacturing Cost

Job 33 =

Job 34 =

Job 35 =

2. Calculate the balance in the Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts at month-end.

Work in Process Inventory =

Finshed Goods Inventory =

Cost of Goods Sold =

Explanation / Answer

1 : The Total Manufacturing Cost :

2. Month end balances:

Work in Process Inventory = $7400

Finshed Goods Inventory =$15400

Cost of Goods Sold = $14450

Job O Balance D Mat applied D Lab applied OH applied (50% of DL cost) Total Cost 33 4000 3400 4700 2350 14450 sold 34 5000 3500 4600 2300 15400 FG 35 0 3200 2800 1400 7400 WIP