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 the current year, estimated direct labor hours are 133,000 and estimated factory overhead is $784,700. The following information is for September. Job X was completed during September, while Job Y was started but not finished.$\begin{array}{lr}
\text { September 1, inventories: }\
\text { Materials }&\$24,000\
\text { Work-in-process (All Job X) } & 53,400 \
\text { Finished goods } & 105,600\
\text { Materials purchases }&\$157,000\
\text { Direct materials requisitioned: }\
\text { Job X } & \$5 74,000 \
\text { Job Y } &68,000 \\text { Direct labor hours: } & \
\text { Job X } & 7,000 \
\text { Job Y } & 5,500\\text { Labor costs incurred: }\
\text { Direct labor ( } \$ 6.00 \text { per hour) }&\$75,000\
\text { Indirect labor } & 24,200 \
\text { Factory supervisory salaries } & 11,100 \
\text { Rental costs: } &\\text { Factory }&\$9,300\
\text { Administrative offices }&3,200\\text { Total equipment depreciation costs: }\
\text { Factory } & \$ 10,400 \
\text { Administrative offices } & 2,800 \
\text { Indirect materials used } & \$ 17,800
\end{array}$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 the current year, estimated direct labor hours are 133,000 and estimated factory overhead is $784,700. The following information is for September. Job X was completed during September, while Job Y was started but not finished.$\begin{array}{lr}
\text { September 1, inventories: }\
\text { Materials }&\$24,000\
\text { Work-in-process (All Job X) } & 53,400 \
\text { Finished goods } & 105,600\
\text { Materials purchases }&\$157,000\
\text { Direct materials requisitioned: }\
\text { Job X } & \$5 74,000 \
\text { Job Y } &68,000 \\text { Direct labor hours: } & \
\text { Job X } & 7,000 \
\text { Job Y } & 5,500\\text { Labor costs incurred: }\
\text { Direct labor ( } \$ 6.00 \text { per hour) }&\$75,000\
\text { Indirect labor } & 24,200 \
\text { Factory supervisory salaries } & 11,100 \
\text { Rental costs: } &\\text { Factory }&\$9,300\
\text { Administrative offices }&3,200\\text { Total equipment depreciation costs: }\
\text { Factory } & \$  10,400 \
\text { Administrative offices } & 2,800 \
\text { Indirect materials used } & \$  17,800
\end{array}$The total ending work-in-process for September is:

Quizplus · Accepted Answer

The predetermined overhead rate is calculated as follows: $\frac{\$784,700}{133,000 \text{ hours}} = \$5.90 \text{ per direct labor hour}$.For September, the total direct labor hours are $7,000 + 5,500 = 12,500$ hours. Thus, the applied overhead for September is $12,500 \times \$5.90 = \$73,750$.The total manufacturing costs for September include:- Direct materials requisitioned: $\$574,000 + \$68,000 = \$642,000$- Direct labor: $\$75,000$- Applied overhead: $\$73,750$Adding these gives a total of $\$790,750$.The ending work-in-process inventory includes the costs associated with Job Y, as Job X was completed. For Job Y, the costs are:- Direct materials: $\$68,000$- Direct labor: $(5,500 \text{ hours} \times \$6.00) = \$33,000$- Applied overhead: $(5,500 \text{ hours} \times \$5.90) = \$32,450$Adding these gives a total of $\$133,450$ for Job Y, which is the ending work-in-process inventory.

Beckner Inc The Total Ending Work-In-Process for September Is: A)$68,000 B)$101,000 C)$133,450

Beckner Inc The Total Ending Work-In-Process for September Is:
A)$68,000
B)$101,000
C)$133,450