Question:
Baar Company is a manufacturing firm that uses job-order costing. The company"s inventory balances were as follows at the beginning and end of the year:
Beginning Balance Ending Balance
|
Raw materials
|
$26,000
|
$20,000
|
|
Work in process
|
$71,000
|
$53,000
|
|
Finished goods
|
$66,000
|
$81,000
|
|
Raw materials
|
$26,000
|
$20,000
|
The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 44,000 machine-hours and incur $176,000 in manufacturing overhead cost. The following transactions were recorded for the year: