- Return To Required Information The Following Information Applies To The Questions Displayed Below Finion Upholstery 1 (41.68 KiB) Viewed 28 times
- Return To Required Information The Following Information Applies To The Questions Displayed Below Finion Upholstery 2 (19.42 KiB) Viewed 28 times
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.