Figure 5-14 Deluxe Design Company Makes Custom Furniture.On December 1,there Were Two

question 55

Essay

Figure 5-14
Deluxe Design Company makes custom furniture.On December 1,there were two jobs in process,Job 683,with a cost of $14,200 and Job 684 with a cost of $23,500.Jobs 685,686,and 687 were started during the month of December.Data on costs added during the month are as follows:
Overhead is applied to production at the rate of 80% of direct labor cost.Job 685 was completed on December 17.Job 684 was completed on December 21 and the client was billed at cost plus 45%.All other jobs remained in process.
Refer to Figure 5-14.
Required:
A.)Determine the amount of overhead to apply to each job for the period.
B.)Calculate the cost of work-in-process at the end of the month.
C.)Calculate the cost of finished goods,assuming that finished goods inventory on December 1st was zero.

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Definitions:

Downstream

Refers to the stages in the production process where processed materials are transformed into final products, or in distribution and supply chain models, the points closer to the end consumer.

Distribution

The process of making a product or service available for the consumer or business user that needs it, through direct or indirect means.

Enterprise Resource Planning (ERP)

Integrated management of main business processes, often in real-time and mediated by software and technology.

Data Management Systems

Systems that acquire, validate, store, protect, and process required data to ensure the accessibility, reliability, and timeliness of the data for its users.