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Required information [The following information applies to the questions displayed below.] Finion Upholstery, Inc., uses a job-order costing system to accumulate manufacturing costs. The company's work-in- process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finion applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor hours, multiplied by the budgeted direct-labor rate.) Budgeted totals for 20x2 for direct labor and manufacturing overhead are $4,200,000 and $5,460,000, respectively. Actual results for the year follow. Direct material used Direct labor $ 5,550,000 4,350,000 64,000 Indirect material used Indirect labor 2,860,000 1,740,000 Factory depreciation Factory insurance 57,000 Factory utilities Selling and administrative expenses 830,000 2,160,000 $17,611,000 Total Job no-2077 was completed in January 20x2, there was no work in process at year-end. All jobs produced during 20x2 were sold with the exception of job no. 2143, which contained direct-material costs of $154,000 and direct-labor charges of $85,000. The company charges any under-or overapplied overhead to Cost of Goods Sold.

Required information [The following information applies to the questions displayed below.] Finion Upholstery, Inc., uses a job-order costing system to accumulate manufacturing costs. The company's work-in- process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finion applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor hours, multiplied by the budgeted direct-labor rate.) Budgeted totals for 20x2 for direct labor and manufacturing overhead are $4,200,000 and $5,460,000, respectively. Actual results for the year follow. Direct material used Direct labor $ 5,550,000 4,350,000 64,000 Indirect material used Indirect labor 2,860,000 1,740,000 Factory depreciation Factory insurance 57,000 Factory utilities Selling and administrative expenses 830,000 2,160,000 $17,611,000 Total Job no-2077 was completed in January 20x2, there was no work in process at year-end. All jobs produced during 20x2 were sold with the exception of job no. 2143, which contained direct-material costs of $154,000 and direct-labor charges of $85,000. The company charges any under-or overapplied overhead to Cost of Goods Sold.

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 15E: The books of Petry Products Co. revealed that the following general journal entry had been made at...
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Return to Required information [The following information applies to the questions displayed below.] Finion Upholstery, Inc., uses a job-order costing system to accumulate manufacturing costs. The company's work-in- process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finion applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor hours, multiplied by the budgeted direct-labor rate.) Budgeted totals for 20x2 for direct labor and manufacturing overhead are $4,200,000 and $5,460,000, respectively. Actual results for the year follow. Direct material used Direct labor $ 5,550,000 4,350,000 64,000 2,860,000 Indirect material used: Indirect labor Factory depreciation. Factory insurance 1,740,000 57,000 830,000 Factory utilities Selling and administrative expenses Total 2,160,000 $17,611,000 Job no 2077 was completed in January 20x2, there was no work in process at year-end. All jobs produced during 20x2 were sold with the exception of job no. 2143, which contained direct-material costs of $154,000 and direct-labor charges of $85,000. The company charges any under-or overapplied overhead to Cost of Goods Sold.
Transcribed Image Text:Return to Required information [The following information applies to the questions displayed below.] Finion Upholstery, Inc., uses a job-order costing system to accumulate manufacturing costs. The company's work-in- process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finion applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor hours, multiplied by the budgeted direct-labor rate.) Budgeted totals for 20x2 for direct labor and manufacturing overhead are $4,200,000 and $5,460,000, respectively. Actual results for the year follow. Direct material used Direct labor $ 5,550,000 4,350,000 64,000 2,860,000 Indirect material used: Indirect labor Factory depreciation. Factory insurance 1,740,000 57,000 830,000 Factory utilities Selling and administrative expenses Total 2,160,000 $17,611,000 Job no 2077 was completed in January 20x2, there was no work in process at year-end. All jobs produced during 20x2 were sold with the exception of job no. 2143, which contained direct-material costs of $154,000 and direct-labor charges of $85,000. The company charges any under-or overapplied overhead to Cost of Goods Sold.
6. Determine the company's 20x2 cost of goods sold. Answer is not complete. $ Finished-goods inventory, Jan. 1 Add: Cost of goods manufactured 154,000 15,661,800 Cost of goods available for sale $ 15,815,800 Less: Finished-goods inventory, Dec. 31 349,500 Unadjusted cost of goods sold $ 15,466,300 Less: Overapplied overhead Cost of goods sold $ 15,466,300.
Transcribed Image Text:6. Determine the company's 20x2 cost of goods sold. Answer is not complete. $ Finished-goods inventory, Jan. 1 Add: Cost of goods manufactured 154,000 15,661,800 Cost of goods available for sale $ 15,815,800 Less: Finished-goods inventory, Dec. 31 349,500 Unadjusted cost of goods sold $ 15,466,300 Less: Overapplied overhead Cost of goods sold $ 15,466,300.
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