Question

Sandhill Corporation’s fiscal year ends on November 30. The following accounts are found in its job order cost accounting system for the first month of the new fiscal year.

Other data:

1.		On December 1, two jobs were in process: Job No. 154 and Job No. 155. These jobs had combined direct materials costs of $9,850 and direct labor costs of $16,100. Overhead was applied at a rate that was 75% of direct labor cost.
2.		During December, Job Nos. 156, 157, and 158 were started. On December 31, Job No. 158 was unfinished. This job had charges for direct materials $4,400 and direct labor $5,200, plus manufacturing overhead. All jobs, except for Job No. 158, were completed in December.
3.		On December 1, Job No. 153 was in the finished goods warehouse. It had a total cost of $5,300. On December 31, Job No. 157 was the only job finished that was not sold. It had a cost of $4,600.
4.		Manufacturing overhead was $1,695 underapplied in December.

List the letters (a) through (m) and indicate the amount pertaining to each letter.

Raw Materials Inventory
Dec. 1	Beginning balance	?	(a)	Dec. 31	Requisitions	17,850
31	Purchases	18,325
Dec. 31	Ending balance	8,255

Work in Process Inventory
Dec. 1	Beginning balance	?	(b)	Dec. 31	Jobs completed	?	(f)
31	Direct materials	?	(c)
31	Direct labor	8,900
31	Overhead	?	(d)
Dec. 31	Ending balance	?	(e)

Finished Goods Inventory
Dec. 1	Beginning balance	?	(g)	Dec. 31	Cost of goods sold	?	(i)
31	Completed jobs	?	(h)
Dec. 31	Ending balance	?	(j)

Factory Labor
Dec. 31	Factory wages	12,125		Dec. 31	Wages assigned	?	(k)

Manufacturing Overhead
Dec. 31	Indirect materials	3,300		Dec. 31	Overhead applied	?	(m)
31	Indirect labor	?	(l)
31	Other overhead	1,845

Answer 1

	Answer:
	Raw Materials Inventory
Dec . 1	Beginning balance ( $ 17,850 + $8,255 - $18,325 )	$ 7,780	31-Dec	Requisitions	$ 17,850
Dec . 31	Purchases	$ 18,325
Dec . 31	Ending Balance	$ 8,255
	Work in Process Inventory
Dec . 1	Beginning balance [$ 9,850 + $ 16,100 + ($16,100 X 75%)	$ 38,025	Dec . 31	Jobs Completed [ $ 38,025 + $14,550 + $ 8,900 + $6,675 - $13,500 ]	$ 54,650
Dec . 31	Direct Material [$ 17,850 - $3,300 ]	$ 14,550
Dec . 31	Direct Labor	$ 8,900
Dec . 31	Overhead [ $ 8,900 x 75% ]	$ 6,675
31-Dec	Ending Balance [ $4,400 + $ 5,200 + ($5,200 X 75%)	$ 13,500
	Finished Goods Inventory
Dec . 1	Beginning balance	$ 5,300 ( Given )	Dec . 31	Cost of Goods Sold $5,300 + $54,650 - $4,600	$ 55,350
Dec . 31	Completed Jobs [ $ 38,025 + $14,550 + $ 8,900 + $6,675 - $13,500 ]	$ 54,650
Dec . 31	Ending Balance (Given in the question)	$ 4,600 ( Given )
	Factory Labor
Dec . 31	Factory Wages	$ 12,125	Dec . 31	Wages Assigned [Same as Factory Wages Incurred ]	$ 12,125
	Manufacturing Overhead
Dec . 31	Indirect Materials	$ 3,300	Dec . 31	Overhead Applied [ $3,300 + $3,225 + $1,845 - $1,695 ]	$ 6,675
Dec . 31	Indirect Labor [ $ 12,125 - $ 8,900 ]	$ 3,225
Dec . 31	Other Overhead	$ 1,845