ErgoFurn, Inc. manufactures ergonomically  designed computer furniture. ErgoFurn uses a job order costing system. On November 30, the Work in  Process Inventory consisted of the following jobs:

On November 30, ErgoFurn’s Direct Materials Inventory account totaled $150,000, and its Finished  Goods Inventory totaled $536,000. ErgoFurn applies manufacturing overhead on the basis of machine  hours. The company’s manufacturing overhead budget for the year totaled $1,890,000, and the company  planned to use 126,000 machine hours during the year. Through the first eleven months of the year, the  company used a total of 118,000 machine hours, total manufacturing overhead amounted to $1,818,700,  and Cost of Goods Sold was $4,680,000.  ErgoFurn purchased $638,000 in direct materials in December and incurred the following costs for  jobs in process that month:

The following jobs were completed in December and transferred to the Finished Goods Inventory:

Required

a. Calculate the total cost of each of the four jobs worked on in December.

b. Calculate the total manufacturing cost for December.

c. Calculate the cost of goods manufactured for December.

d. Calculate the balance in the Work in Process Inventory account on December 31.

e. Assume that ErgoFurn sold 8,200 computer caddies, 8,000 chairs, and 4,500 desks in December.  Calculate Cost of Goods Sold for the month of December and the ending Finished Goods Inventory  balance on December 31.

Transcribed Image Text:

Job No. Item Units Accumulated Cost СС723 Computer caddy 10,000 $500,050 CH291 Chair 8,000 237,810 PS812 Printer stand 12,000 130,000 $867,860