FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
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Use the following information to answer the next 3 questions
Kite Corp. manufactures custom cabinets and uses a job-order costing system. The company had
two jobs in process at the beginning of October: Job No. 64 with a total beginning cost of $56,700
and Job No. 65 with a total beginning cost of $83,300.
The company applies manufacturing overhead on the basis of machine hours. Budgeted overhead
and machine activity for the year were anticipated to be $3,021,000 and 57,000 machine hours.
The company worked on four jobs during the month of October. Direct materials, direct labor
incurred, and machine hours consumed were as follows:
Direct Labor
$35,000
$22,000
$65,000
$ 8,800
Job No.
Direct Material
Machine Hours
64
$21,000
1,500
900
65
$44,000
$15,000
66
2,000
67
200
Indirect production costs incurred during October included charges for depreciation ($34,000),
indirect labor ($68,000), indirect materials ($5,000), and other factory costs ($139,100). Kite Corp.
completed Job No. 64 and Job No. 66 during October. Job 64 was sold on October 22nd.
3.
What is the balance in work in process at the end of October?
a. $104,100 b. $129,100 c. $249,400 d. $187,400 e. $153,000 f. $130,200 g. $402,400 h. None of the
above
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