The following selected data were taken from the books of the Bixby Box Company.
ID: 2417783 • Letter: T
Question
The following selected data were taken from the books of the Bixby Box Company. The company uses job costing to account for manufacturing costs. The data relate to June operations.
A) Materials and supplies were requisitioned from the stores clerk as follows:
Job 405, material X, $17,000.
Job 406, material X, $7,140; material Y, $14,620.
Job 407, material X, $17,000; material Y, $7,820.
For general factory use: materials A, B, and C, $5,440.
B) Time tickets for the month were chargeable as follows:
C) Other information:
Factory paychecks for $88,740 were issued during the month.
Various factory overhead charges of $44,370 were incurred on account.
Depreciation of factory equipment for the month was $7,400.
Factory overhead was applied to jobs at the rate of $3.00 per direct labor hour.
Job orders completed during the month: Job 405 and Job 406.
Selling and administrative costs were $5,100.
Factory overhead is closed out only at the end of the year.
The end of the month Work-in-Process Inventory balance would be:
Explanation / Answer
Ending Work in Process balance is calculated as under:
Job 405 and Job 406 is completed so no Work in Process.
job 407 is in process so Work in process is calculated below:
Direct Material $17,000 plus $7,820
Direct Labour $19,380
Manufacturing Overhead ($3*4,760) $14,280
So, the work in process is $58,480