Augusta Test Systems Manufactures Automated Test Systems That Perform Quality

question 83

Essay

Augusta Test Systems manufactures automated test systems that perform quality inspections during and at the completion of the manufacturing process.As most manufacturing processes are unique,Augusta's test equipment is designed to customer specifications,and each system has a selling price in excess of $300,000.The company uses a job-order cost system based on the full absorption of actual costs and applies overhead on the basis of machine hours using a predetermined overhead rate.For the fiscal year ended November 30 budgeted manufacturing overhead was $1,960,000,and the expected activity level was 98,000 machine hours.Data regarding several jobs at Augusta are presented below.By the end of November all jobs but RX-115 were completed,and all completed jobs had been delivered to customers with the exception of SL-205.
$$\begin{array} { | r r | r | r | r | } \hline \text { Job No. } & \begin{array} { r } \text { Balance } \\\mathbf { 1 0 8 1 }\end{array} & \begin{array} { r } \text { Direct } \\\text { Materials }\end{array} & \begin{array} { r } \text { Direct } \\\text { Labor }\end{array} & \begin{array} { r } \text { Machine } \\\text { Hous }\end{array} \\\hline \text { XJ-107 } & \$ 118,600 & \$ 4,000 & \$ 8,400 & 150 \\\hline \text { ST-211 } & 121,450 & 2,500 & 12,160 & 300 \\\hline \text { XD-108 } & 21,800 & 86,400 & 36,650 & 3,100 \\\hline \text { SL-205 } & 34,350 & 71,800 & 32,175 & 2,700 \\\hline \text { RX-115 } & & 18,990 & 21,845 & 1,400 \\\hline\end{array}$$
Required:
(a)Determine the balance in the Finished Goods Inventory on November 30.(b)Compute the cost of goods manufactured for November.(c)Compute the Cost of Goods Sold for November.(d)Determine the balance in Work-In-Process Inventory on November 30.

---

Definitions:

Levels of Organization

The ranking of structures in a hierarchical fashion, from simplest to most complex, commonly used in fields like biology to categorize the structure of organisms.

Essential Attributes

Fundamental or necessary qualities inherent in a subject or object that define its nature or essence.

Mutually Exclusive

A condition in which two or more propositions or events cannot be true or occur at the same time.

Classification Scheme

A system for organizing data or concepts into categories based on shared characteristics.