# Question: Tottham Industries is a company that makes special order sound systems

Tottham Industries is a company that makes special-order sound systems. The chief financial officer has records for February that reveal the following information:
Beginning inventory balances:
Materials Inventory .......... \$27,450
Work in Process Inventory ....... 22,900
Finished Goods Inventory ........ 19,200
February 6 .............. \$ 7,200
February 12 ............. 8,110
February 24 ............. 5,890
Direct labor costs:
February 14 ............. \$13,750
February 28 ............. 13,230
Direct materials requested for production:
February 4............... \$9,080
February 13 ............. 5,940
February 25 ............. 7,600
Job order cost cards for jobs in process on February 28 had the following totals:
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The predetermined overhead rate for the month was 140 percent of direct labor costs. Sales for February totaled \$152,400, the cost of production for the goods sold was \$89,000.

Required
1. Using T accounts for Materials Inventory, Work in Process Inventory, Finished Goods Inventory, Overhead, Accounts Receivable, Payroll Payable, Sales, and Cost of Goods Sold, reconstruct the transactions in February, including applying overhead to production.
2. Compute the cost of units completed during the month.
3. Determine the ending balances in the inventory accounts.
4. During the first week of March, Jobs AJ-10 and AJ-14 were completed. No additional direct materials costs were incurred, but Job AJ-10 needed \$720 more of direct labor, and Job AJ-14 needed an additional \$1,140 of direct labor. Job AJ-10 was 40 units; Job AJ-14, 50 units. Compute the product unit cost for each completedjob.
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