Fern Inc. manufacturers custom furniture for both residential and commercial clients. Fern has a December 31...

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Fern Inc. manufacturers custom furniture for both residential and commercial clients. Fern has a December 31 year-end. On September 1, Fern had two jobs in progress: Direct materials Direct labour Manufacturing overhead Total R5-22 $1,480 C5-23 $1,640 1,550 1,600 1,240 1,280 $4,270 $4,520 Direct job cost and other information for September is below: R5-22 C5-23 C5-24 C5-25 R5-26 Direct materials cost $1,800 $2,400 $3,450 $3,600 $2,270 Direct labour cost $1,650 $2,250 $2,825 $3,250 $2,175 Direct labour hours 33.00 45.00 56.50 65.00 43.50 In addition to the cost above, Fern incurred the following costs during September: Raw material purchases $22,000 Plant supervisor salaries $6,000 Depreciation - Plant equipment 4,500 Factory supplies 1,100 Depreciation - Distribution trucks 2,000 Head office payroll 10,000 Utilities - Plant 1,500 Other plant overhead 750 Utilities - Head office 500 Other operating expenses 500 Other information: There was no finished goods inventory as at September 1 At the end of the month, the only job remaining in WIP inventory is C5-25, all other jobs were completed during the month The only job remaining in FG inventory on September 30 is C5-24. There was a delay in shipping to the customer. The product was shipped in October. Fern uses a normal costing system. Manufacturing overhead is allocated using budgeted direct labour hours as the allocation base. Total budgeted manufacturing overhead cost for the year was $832,000 and total budgeted labour hours were 20,800. Fern recognized $45,000 of sales revenue during the month Fern writes-off any over/under applied manufacturing overhead costs to cost of goods sold in the period. Required: 1. Calculate Fern's predetermined overhead rate (2 marks) 2. Calculate the ending account balances for work-in-process and finished goods (4 marks) 3. Calculate cost of goods sold for September, before adjustment (4 marks) Fern Inc. manufacturers custom furniture for both residential and commercial clients. Fern has a December 31 year-end. On September 1, Fern had two jobs in progress: Direct materials Direct labour Manufacturing overhead Total R5-22 $1,480 C5-23 $1,640 1,550 1,600 1,240 1,280 $4,270 $4,520 Direct job cost and other information for September is below: R5-22 C5-23 C5-24 C5-25 R5-26 Direct materials cost $1,800 $2,400 $3,450 $3,600 $2,270 Direct labour cost $1,650 $2,250 $2,825 $3,250 $2,175 Direct labour hours 33.00 45.00 56.50 65.00 43.50 In addition to the cost above, Fern incurred the following costs during September: Raw material purchases $22,000 Plant supervisor salaries $6,000 Depreciation - Plant equipment 4,500 Factory supplies 1,100 Depreciation - Distribution trucks 2,000 Head office payroll 10,000 Utilities - Plant 1,500 Other plant overhead 750 Utilities - Head office 500 Other operating expenses 500 Other information: There was no finished goods inventory as at September 1 At the end of the month, the only job remaining in WIP inventory is C5-25, all other jobs were completed during the month The only job remaining in FG inventory on September 30 is C5-24. There was a delay in shipping to the customer. The product was shipped in October. Fern uses a normal costing system. Manufacturing overhead is allocated using budgeted direct labour hours as the allocation base. Total budgeted manufacturing overhead cost for the year was $832,000 and total budgeted labour hours were 20,800. Fern recognized $45,000 of sales revenue during the month Fern writes-off any over/under applied manufacturing overhead costs to cost of goods sold in the period. Required: 1. Calculate Fern's predetermined overhead rate (2 marks) 2. Calculate the ending account balances for work-in-process and finished goods (4 marks) 3. Calculate cost of goods sold for September, before adjustment (4 marks)

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