Problem:
(Simple inventory calculation) Production data for the first week in November 2010 for Florida Fabricators were as follows:
|
WORK IN PROCESS INVENTORY
|
|
|
Date
|
Job No.
|
Material
|
Labor
|
Machine Time (Overhead)
|
|
Nov. 1
|
411
|
$1,900
|
36 hours
|
50 hours
|
|
1
|
412
|
1,240
|
10 hours
|
30 hours
|
|
7
|
417
|
620
|
8 hours
|
16 hours
|
|
|
|
|
|
|
Finished Goods Inventory, Nov. 1: $23,800
Finished Goods Inventory, Nov. 5: $0
|
MATERIAL RECORDS
|
|
|
Type
|
Inv. 11/1
|
Purchases
|
Issuances
|
Inv. 11/5
|
|
Aluminum
|
$ 8,300
|
$98,300
|
$58,700
|
$ ?
|
|
Steel
|
12,800
|
26,500
|
34,200
|
$ ?
|
|
Other
|
5,800
|
23,550
|
25,900
|
$ ?
|
Direct labor hours worked in the first week of November were 680 at a cost of $15 per direct labor hour. Machine hours worked that week were 1,200. Overhead for first week in November was as follows:
|
Depreciation
|
$ 9,000
|
|
Supervisor salaries
|
14,400
|
|
Indirect labor
|
8,350
|
|
Insurance
|
2,800
|
|
Utilities
|
2,250
|
|
Total
|
$36,800
|
Overhead is applied to production at a rate of $30 per machine hour. Underapplied or overapplied overhead is treated as an adjustment to Cost of Goods Sold at year-end. All company jobs are consecutively numbered, and all work not in ending Finished Goods Inventory has been completed and sold. The only job in progress on November 5 was #417.
Determine the following balances on November 5:
a. the three raw material accounts
b. Work in Process Inventory
c. Cost of Goods Sold