The work-in-process inventory consists of two jobs: Job No. Units Items 3005-5 3006-4 48,000 40,000 Estate Sprinklers Economy Sprinklers Accumulated Cost $ 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 per gross 5,000 units @ $16 per gross. 100,000 units @ $5 per gross. Accumulated $ Cost 110,000 1,955,000 140,000 80,000 500,000 $2,785,000 The factory cost budget prepared for the 2024 is presented belo Factory Cost Annual Budget for the year ended Dec 31, 2024. 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 3005-5 3006-4 $110,000 $100,000 $ 6,000 4001-3 (30,000 gross of rainmaker nozzles) 181,000 Total Requisitions $210,000 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 20,000 20,000 $379,000 $20,000 $672,000 3. The payroll summary for the December is as follows: Job No. Hours Cost 3005-5 6,000 $ 62,000 3006-4 2,500 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 Utilities $ 62,000 15,000 Insurance 1,000 Property Taxes Miscellaneous 4,000 5,000 $ 87,000 5. Jobs completed during December and the actual output were: Job No. Quantity Items 3005-5 48,000 units Estate Sprinklers 3006-4 39,000 units 4001-3 29,500 units 4003-5 49,000 units Economy Sprinklers Rainmaker nozzles Ring Sprinklers 6. The following finished products were shipped to customers during December: Items Quantity Estate sprinklers Deluxe sprinklers 16,000 units 32,000 units Economy sprinklers 20,000 units Ring sprinklers 22,000 units Brass nozzles 5,000 gross Rainmaker nozzles 10,000 gross Connectors 26,000 gross

The work-in-process inventory consists of two jobs: Job No. Units Items 3005-5 3006-4 48,000 40,000 Estate Sprinklers Economy Sprinklers Accumulated Cost $ 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 per gross 5,000 units @ $16 per gross. 100,000 units @ $5 per gross. Accumulated $ Cost 110,000 1,955,000 140,000 80,000 500,000 $2,785,000 The factory cost budget prepared for the 2024 is presented belo Factory Cost Annual Budget for the year ended Dec 31, 2024. 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 3005-5 3006-4 $110,000 $100,000 $ 6,000 4001-3 (30,000 gross of rainmaker nozzles) 181,000 Total Requisitions $210,000 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 20,000 20,000 $379,000 $20,000 $672,000 3. The payroll summary for the December is as follows: Job No. Hours Cost 3005-5 6,000 $ 62,000 3006-4 2,500 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 Utilities $ 62,000 15,000 Insurance 1,000 Property Taxes Miscellaneous 4,000 5,000 $ 87,000 5. Jobs completed during December and the actual output were: Job No. Quantity Items 3005-5 48,000 units Estate Sprinklers 3006-4 39,000 units 4001-3 29,500 units 4003-5 49,000 units Economy Sprinklers Rainmaker nozzles Ring Sprinklers 6. The following finished products were shipped to customers during December: Items Quantity Estate sprinklers Deluxe sprinklers 16,000 units 32,000 units Economy sprinklers 20,000 units Ring sprinklers 22,000 units Brass nozzles 5,000 gross Rainmaker nozzles 10,000 gross Connectors 26,000 gross

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 14PB: Rexar had 1,000 units in beginning inventory before starting 9.500 units and completing 8,000 units....

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