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Business, 25.02.2020 23:59 edgarlimon2000
Furr Fabricators produces protective covers for smart phones. Since the covers must be customized to each smart phone model, Furr uses a job order costing system. On September 1, the company reported the following inventory balances:
Direct Materials $32,400
Work in Process $153,000
Finished Goods $256,000
During September, the following events occurred:
1.Furr purchased direct materials costing $3,154,000 on account.
2.Furr used $434,000 in direct materials in production.
3.Furrs employees clocked 18,000 direct labor hours at an average wage rate of $14.39 per direct labor hour.
4.The company incurred $178,000 in manufacturing overhead, including $26,000 in indirect labor costs.
5.Using direct labor hours as the application base, the company applied $164,000 of manufacturing overhead to jobs worked on in September.
6.The company completed production on jobs costing $855,000.
7. The company delivered jobs costing $1,079,000 to customers.
a. Calculate the ending September balance of the Direct Materials, Work in Process, and Finished Goods Inventory accounts.
b. Calculate total manufacturing costs for September.
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Furr Fabricators produces protective covers for smart phones. Since the covers must be customized to...
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