JOB-ORDER COSTING Garden-R-US Inc. manufactures lawn equipment. The business uses a job-order system because the products are manufactured in batches rather than a continuous basis. The balances in selected general-ledger accounts for the eleven-month period ended November 30, 2024 are presented below: Materials inventory Work-in-process inventory Finished goods inventory Factory overhead control Cost of goods sold $ 32,000 1,200,000 2,785,000 2,260,000 14,200,000 The work-in-process inventory consists of two jobs: Accumulated Job No. Units Items Cost 3005-5 3006-4 48,000 40,000 Estate Sprinklers Economy Sprinklers $ 700,000 500,000 $1,200,000 The finished goods inventory consists of five items: Items Estate sprinklers Deluxe sprinklers Brass nozzles Rainmaker nozzles Connectors Quantity and Unit Cost 5,000 units @ $22 each 115,000 units @ $17 each 10,000 units @ $14 5,000 units @ $16 100,000 units @ $5. per gross per gross per gross The factory cost budget prepared for the 2024 is presented below: Factory Cost Annual Budget for the year ended Dec 31, 2024. Accumulated Cost $ 110,000 1,955,000 140,000 80,000 500,000 $2,785,000 Direct Materials Purchased Parts Direct Labor (400,000 hours). $ 3,800,000 6,000,000 4,000,000 Overhead Supplies $190,000 Indirect labor 700,000 Supervision 250,000 Depreciation 950,000 Utilities 200,000 Insurance 10,000 Property taxes 40,000 Miscellaneous 60,000 2,400,000 $16,200,000 The company applies factory overhead on the basis of direct labor hours. The actual activities during the first eleven months of the year were quite close to the budget. A total of 367,000 hours have been worked through Nov 30, 2024. The December 2024 transactions are summarized below: 1. All direct materials, purchased parts, and supplies are charged to materials inventory. The December purchases were as follows: Direct materials Purchased parts. Supplies $410,000 285,000 13,000 2. The direct materials, purchased parts, and supplies were requisitioned from materials inventory as shown in the table below. Purchased Parts Materials Supplies Total Requisitions 3005-5 3006-4 $110,000 $100,000 $ $210,000 4001-3 (30,000 gross of rainmaker nozzles) 6,000 181,000 6,000 181,000 4002-1 (10,000 deluxe 92,000 sprinklers) 4003-5 (50,000 ring 163,000 sprinklers) Supplies $273,000 92,000 163,000 $379,000 20,000 $20,000 20,000 $672,000 3. The payroll summary for the December is as follows: Job No. Hours Cost 3005-5 3006-4 6,000 2,500 $ 62,000 4001-3 18,000 26,000 182,000 4002-1 500 5,000 4003-5 5,000 52,000 Indirect 8,000 60,000 Supervision 24,000 Sales & administration 120,000 $531,000 4. Other factory costs incurred during December 2024 were: Depreciation $ 62,000 Utilities Insurance 15,000 1,000 Property Taxes 4,000 Miscellaneous 5,000 $ 87,000