B6021 Module 1 Assignment 3 Calculating Inventory\t\u00a0\tFinlon Upholstery Inc. uses a job-order costing system to accumulate manufacturing costs. The company’s work-in-process on December 31, 2001, 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.\t\u00a0\tFinlon 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 2002 for direct labor and manufacturing overhead are $4,200,000 and $5,460,000, respectively. Actual results for the year are as follows:\t\u00a0\tActual Results\t\u00a0\t\u00a0\t\u00a0\tDirect Materials Used\t\u00a0\t$5,600,000.00\t\u00a0\tDirect Labor\t\u00a0\t$4,350,000.00\t\u00a0\tIndirect Material Used\t\u00a0\t$65,000.00\t\u00a0\tIndirect Labor\t\u00a0\t$2,860,000.00\t\u00a0\tFactory Depreciation\t\u00a0\t$1,740,000.00\t\u00a0\tFactory Insurance\t\u00a0\t$59,000.00\t\u00a0\tFactory Utilities\t\u00a0\t$830,000.00\t\u00a0\tSelling and Administrative Expenses\t\u00a0\t$2,160,000.00\t\u00a0\tTotal\t\u00a0\t$17,664,000.00\t\u00a0\t\u00a0\t\u00a0\tJob No. 2077 was completed in January 2002 and there was no work in process at year-end. All jobs produced during 2002 were sold with the exception of Job No. 2143, which contained direct-material costs of $156,000 and direct-labor charges of $85,000. The company charges any under- or over-applied overhead to the cost of goods sold category.\t\u00a0\tUsing the above information, do the following:\t\u00a0\tCalculate the company’s predetermined overhead application rate.\tCalculate the additions to the work-in-process inventory account for the direct material used, direct labor, and manufacturing overhead.\tCalculate the finished-goods inventory for the 12\/31\/01 balance sheet.\tCalculate the over-applied or under-applied overhead at year-end.\tExplain if it is appropriate to include selling and administrative expenses in the cost of goods sold category.\tPerform your calculations in an Excel spreadsheet and copy the calculations into a Word document. Your final product should be a 1-page paper in Word format. Apply APA standards to citation of sources.<\/p>\n","protected":false},"excerpt":{"rendered":"
B6021 Module 1 Assignment 3 Calculating Inventory \u00a0 Finlon Upholstery Inc. uses a job-order costing system to accumulate manufacturing costs. The company’s work-in-process on December 31, 2001, consisted of one job (no. 2077), which was carried on the year-end balance Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-202455","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/202455","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=202455"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/202455\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=202455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=202455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=202455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}