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. Finlon 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 $5,544,000, respectively. Actual results for the year follow. Direct material used Direct labor Indirect material used Indirect labor Factory depreciation Factory insurance Factory utilities Selling and administrative expenses Total $ 5,550,000 4,350,000 63,000 2,860,000 1,740,000 57,000 828,000 2,160,000 $17,608,000 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. 3. Compute the amount that the company would disclose as finished-goods inventory on the December 31, 20x2, balance sheet.
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. Finlon 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 $5,544,000, respectively. Actual results for the year follow. Direct material used Direct labor Indirect material used Indirect labor Factory depreciation Factory insurance Factory utilities Selling and administrative expenses Total $ 5,550,000 4,350,000 63,000 2,860,000 1,740,000 57,000 828,000 2,160,000 $17,608,000 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. 3. Compute the amount that the company would disclose as finished-goods inventory on the December 31, 20x2, balance sheet.
Chapter1: Financial Statements And Business Decisions
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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.
Finlon 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 $5,544,000, respectively. Actual results
for the year follow.
Direct material used
Direct labor
Indirect material used
Indirect labor
Factory depreciation
Factory insurance
Factory utilities
Selling and administrative expenses
Total
$ 5,550,000
4,350,000
63,000
2,860,000
1,740,000
57,000
828,000
2,160,000
$17,608,000
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.
3. Compute the amount that the company would disclose as finished-goods inventory on the December 31, 20x2, balance sheet.
Answer is complete but not entirely correct.
Finished-goods inventory $ 353,200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc6b3292-544f-431f-ac6e-443381875618%2Fabf4c81f-1bbc-4964-8655-1950712712c0%2Fy540sr_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
Finlon 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 $5,544,000, respectively. Actual results
for the year follow.
Direct material used
Direct labor
Indirect material used
Indirect labor
Factory depreciation
Factory insurance
Factory utilities
Selling and administrative expenses
Total
$ 5,550,000
4,350,000
63,000
2,860,000
1,740,000
57,000
828,000
2,160,000
$17,608,000
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.
3. Compute the amount that the company would disclose as finished-goods inventory on the December 31, 20x2, balance sheet.
Answer is complete but not entirely correct.
Finished-goods inventory $ 353,200
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