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 Indirect material used Indirect labor 2,860,000 1,740,000 Factory depreciation Factory insurance 57,000 Factory utilities Selling and administrative expenses 830,000 2,160,000 $17,611,000 Total 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.
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 Indirect material used Indirect labor 2,860,000 1,740,000 Factory depreciation Factory insurance 57,000 Factory utilities Selling and administrative expenses 830,000 2,160,000 $17,611,000 Total 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F50b6afa2-b780-4729-b5ef-4c5f15273615%2F4bb53ce3-f4af-456b-884a-87119de1f208%2Fwclhgk9_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
Transcribed Image Text: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.
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