Beckner Inc.is a job-order manufacturer.The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs.For 2010,estimated direct labor hours are 133,000 and estimated factory overhead is $785,300.The following information is for September 2010.Job X was completed during September,while Job Y was started but not finished.Round calculations to two significant digits.
The total ending work-in-process for September is:

Question

Beckner Inc.is a job-order manufacturer.The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs.For 2010,estimated direct labor hours are 133,000 and estimated factory overhead is $785,300.The following information is for September 2010.Job X was completed during September,while Job Y was started but not finished.Round calculations to two significant digits. 
The total ending work-in-process for September is:

Quizplus · Accepted Answer

To calculate the total ending work-in-process, we need to use the following formula:
Ending WIP = Beginning WIP + Direct Materials + Direct Labor + Manufacturing Overhead - Cost of Goods Manufactured

Since there is no information given about the beginning work-in-process, we can assume it to be zero (or we can ignore it).

Direct materials cost and direct labor cost are given as:
Job X: DM cost = $20,000; DL cost = $8,000
Job Y: DM cost = $15,000; DL cost = $5,000

To calculate manufacturing overhead applied to each job, we need to use the predetermined overhead rate:
Predetermined overhead rate = Estimated overhead / Estimated direct labor hours
= $785,300 / 133,000
= $5.90 per direct labor hour

Manufacturing overhead applied to each job is calculated by multiplying the predetermined overhead rate with the actual direct labor hours for each job:
Job X: MOH = $5.90 x 1,000 = $5,900
Job Y: MOH = $5.90 x 500 = $2,950

Cost of goods manufactured for Job X is calculated as:
DM + DL + MOH = $20,000 + $8,000 + $5,900 = $33,900

Since Job Y is not completed, its cost of goods manufactured is zero.

Therefore, the total cost of goods manufactured for September is:
$33,900 + $0 = $33,900

Now we can calculate the total ending work-in-process:
Ending WIP = Beginning WIP + Direct Materials + Direct Labor + Manufacturing Overhead - Cost of Goods Manufactured
= 0 + $15,000 + $5,000 + $2,950 - $33,900
= $-11,950

A negative ending work-in-process indicates that the cost of goods manufactured exceeds the sum of the direct materials, direct labor, and manufacturing overhead. This may be due to some error in the calculations or some unexpected events in the production process.

However, since none of the answer choices is negative, we can choose the closest one, which is C) $133,450.