The Film Company uses a job-order costing system. The following information pertains to the company's activities
for the month of December:
On December 1, the company had two jobs in work in process as follows: Job 6 $20,000 and Job 8 $14,000
On December 1, the company had job in Finished Goods as follows: Job 10 $50,000
Jobs 12 and 13 were started during the month.
Materials were purchased on account in December for $54,000
Materials were requisitioned for use in production. The direct materials were distributed as follows:
Job #6 $6,000 Job #8 $8,000 Job #12 $23,000 Job #13 $7,000
Direct labor was incurred in December. The direct labor was distributed as follows:
Job #6 $30,000 Job #8 $20,000 Job #12 $35,000 Job #13 $10,000
Overhead is applied using camera hours. The budgeted overhead for the coming year is $1,000,000
Estimated camera hours is the cost driver and is 250,000 camera hours
The following is the distribution of Camera hours (CH) for December:
Job #6 3,000 CH Job #8 4,000 CH Job #12 11,000 CH Job #13 2,000 CH
Actual overhead for December was incurred for various indirect costs on account.
Use a generic miscellaneous payable account in your journal entry. $75,000
Job Nos. 8 and 12 were completed during the month.
Job Nos.10 and 12 were sold to customers on account during December at 125% of cost
Any over-or underapplied overhead is closed to Cost of Goods Sold.
What is the ending balance in Work in Process on December 31. Give the applicable Job number(s), dollar amount for each job, and total ending Work in Process.
What is the ending balance in finished goods on December 31. Give the applicable Job number(s), dollar amount for each job, and total ending Finished Goods.
Calculate the cost of goods sold for the month ending December 31. Give the applicable Job number(s), dollar amount for each job, and total for Cost of Goods Sold.
Answer 1) Ending balance in Work in Process on December 31 : Job 6 .......................... $ 68,000 Job... View the full answer