The Fielder manufacturing company uses job order costing system. The company uses machine hours to apply overhead cost to jobs. At the beginning of 2020, the company estimated that 7,850 machine hours would be worked and $1,256,000 overhead cost would be incurred during 2020. The following activities took place in the work in process inventory during February     WIP Inventory A/C   February 1 Bal. b / f          51,250   Direct Materials Used   256,400         Other transactions incurred:  Indirect material issued to production was $38,000  Total manufacturing labor incurred in February was $345,000, 80% of this amount represented direct labor.  Other manufacturing overhead costs incurred for February amounted to $340,750.  Two jobs were completed with total costs of $324,000 & $240,000 respectively. They were sold on account at a margin of 40% on sales.         iv) What is balance on the Cost of Goods Sold account after the adjustment v) Calculate the gross profit earned by Fielder. vi) Determine the balance in work in process inventory on February 29

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The Fielder manufacturing company uses job order costing system. The company uses machine hours to apply overhead cost to jobs. At the beginning of 2020, the company estimated that 7,850 machine hours would be worked and $1,256,000 overhead cost would be incurred during 2020. The following activities took place in the work in process inventory during February

 

 

WIP Inventory A/C

 

February 1 Bal. b / f          51,250

 

Direct Materials Used   256,400

 

 

 

 

Other transactions incurred:

 Indirect material issued to production was $38,000

 Total manufacturing labor incurred in February was $345,000, 80% of this amount

represented direct labor.

 Other manufacturing overhead costs incurred for February amounted to $340,750.

 Two jobs were completed with total costs of $324,000 & $240,000 respectively. They were sold on account at a margin of 40% on sales.

 

 

 

 

  1. iv) What is balance on the Cost of Goods Sold account after the adjustment
  2. v) Calculate the gross profit earned by Fielder.
  3. vi) Determine the balance in work in process inventory on February 29

 

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