During the First Month of the Current Accounting Period,Southern California

question 37

Essay

During the first month of the current accounting period,Southern California Company experienced a devastating loss due to a fire.Many of the accounting records were lost and the company is now trying to recreate the lost information.Fragments of data found include the following:
1.A portion of the budget indicates that the overhead rate was $10 per direct labor hour.
2.Job 74 was in process and had incurred $9,600 of direct materials and $14,000 of direct labor (1,000 hours).The company has a single hourly wage rate.
3.During the month,4,500 direct labor hours were worked.
4.Actual overhead costs were $48,000.No indirect materials were used.
5.The Materials Inventory account had a beginning balance of $28,000 and an ending balance of $18,000.
6.The Finished Goods Inventory account had a beginning balance of $12,000 and an ending balance of $26,000.
7.The Work in Process Inventory account had a beginning balance of $17,000.
8.The Cost of Goods Sold is $171,000.
Calculate the following amounts:
a.Ending Work in Process Inventory account balance,Job No.74
b.Cost of goods completed
c.Amount of overhead under- or overapplied.
d.Direct materials used
e.Direct materials purchased

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Definitions:

Egocentrism

The inability to differentiate between one's own perspective and someone else's perspective.

Sensorimotor Stage

The first stage of Piaget's theory of cognitive development, where infants interact with the environment and learn through trial and error using their senses and motor skills.

Preoperational Stage

A stage of cognitive development in Piaget's theory, during which children from about 2 to 7 years of age develop and engage in symbolic play but struggle with logic and taking the perspective of others.

Concrete Operational

A stage in cognitive development in which children gain the ability to think logically about concrete events and objects.