Liliana Richmond started KidCo, Inc. in Albuquerque, New Mexico to produce affordable children's furnishings. The company uses a job-order costing system. KidCo's work-in-process inventory at the end of November consisted of the following jobs.

The company’s November 30 finished-goods inventory, which is valued using the FIFO (first-in, first-out) method, consisted of five items.

KidCo applies manufacturing overhead on the basis of direct-labor hours. The company's overhead budget for the year totals $4,500,000. The company plans to use 600,000 direct-labor hours during this period, which is the firm's estimated practical capacity. Through the first 11 months of the year, a total of 555,000 direct-labor hours were worked, and total overhead amounted to $4,273,500.
At the end of November, the balance in KidCo's Raw-Material Inventory account, which includes both raw material and purchased parts, was $668,000. Additions to inventory and requisitions from inventory during December included the following.

During December, KidCo's factory payroll consisted of the following:

The following list shows the jobs that were completed and the unit sales for December.

Required:
1. Explain when it is appropriate for a company to use a job-order costing system.
2. Calculate the dollar balance in KidCo's Work-in-Process Inventory account as of December 31.
3. Calculate the dollar amount related to the playpens in KidCo's Finished-Goods Inventory account as of December 31.
(CMA,adapted)

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ob No. CBS102. PLP086 DRS11.. Units 20,000.... 15,000.... 25,000 Description Accumulated Cost $900,000 420,000 250,000 $1,570,000 .Cribs Playpens. Dressers Total Item Quantity and Unit Cost 7,500 units$64 each 13,000 units $23 each Accumulated Cost S 480,000 299,000 1,142,400 1,155,000 679,000 rits Strollers Carriages11,200 units$102 each Dressers . Playpens19,400 units $35 each . … 21,000 units $5eac loal $3,755,400 Raw Material Purchased Parts Purchases $242,000 $396,000 Job CBS102 Job PLP086 Job DRS114 Job STRO77 (10,000 strollers) Job CRG098 (5,000 carriages. 51,000 3,000. 124,000. . 62,000. 65,000. 104,000 10,800 87,000 81,000 187,000 CBS102 PLPDB6. DRS114. STRO7. CRG098 Indirect labor Supervision 12,000 hr. 4,400 hr. 19,500 hr. 3,500 hr. 14,000 hr 3,000 hir $122,400 43.200 200,500 30.000 138,000 29,400 57,600 $621,100 Total Production Sales Job No. CBS102. PLP086 STROT7S CRG098.Carriages Items Cribs Playpens. Strollers Quantity Completed 20,000 15,000 10,000 5,000 Items Cribs Playpens. Stollers Dressers. Camiages.. Quantity Shipped 17,500 21,000 14.000 18,000 6,000