1. Use normal job-order costing to calculate the balance in the ending Work-in-Process account and the Cost of Goods Sold account on 31 December 20X3 after any necessary adjustment(s).

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Sweet Memories Printing Ltd (SMP) prints personalized wedding invitation cards for customers. The major differences among job orders are typesetting and order size. SMP uses a normal costing system. Manufacturing overheads are charged to jobs using a predetermined overhead rate based on direct material costs. Manufacturing overhead variance is written off to the Cost of Goods Sold account at the end of each year. The following information is available for 20X3. Costs Amount Budgeted direct material costs Budgeted manufacturing overhead costs Actual direct material costs Actual manufacturing overhead costs SMP did not have any finished goods inventory in 20X3 because all jobs finished were immediately delivered to customers, which means job costs were transferred to the Cost of Goods Sold account immediately after those jobs were finished. The balance of the Cost of Goods Sold account on 30 November 20X3 was $372,900. On 1 December 20X3, Job 190 was in process and recorded at $1,800. SMP started another job, Job 191 in December. Job 190 was finished and delivered to the customer in December, while Job 191 was still in process as of 31 December 20X3. Costs added to two jobs in December 20X3 are as follows: Direct Materials Direct Labour $2,880 $3,540 Job 190 Job 191 $94,500 $189,000 $128,100 $250,400 $3,060 $4,080 Sweet Memories Printing Ltd (SMP) prints personalized wedding invitation cards for customers. The major differences among job orders are typesetting and order size. SMP uses a normal costing system. Manufacturing overheads are charged to jobs using a predetermined overhead rate based on direct material costs. Manufacturing overhead variance is written off to the Cost of Goods Sold account at the end of each year. The following information is available for 20X3. Costs Amount Budgeted direct material costs Budgeted manufacturing overhead costs Actual direct material costs Actual manufacturing overhead costs SMP did not have any finished goods inventory in 20X3 because all jobs finished were immediately delivered to customers, which means job costs were transferred to the Cost of Goods Sold account immediately after those jobs were finished. The balance of the Cost of Goods Sold account on 30 November 20X3 was $372,900. On 1 December 20X3, Job 190 was in process and recorded at $1,800. SMP started another job, Job 191 in December. Job 190 was finished and delivered to the customer in December, while Job 191 was still in process as of 31 December 20X3. Costs added to two jobs in December 20X3 are as follows: Direct Materials Direct Labour $2,880 $3,540 Job 190 Job 191 $94,500 $189,000 $128,100 $250,400 $3,060 $4,080

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To calculate the balance in the ending WorkinProcess WIP account and the Cost of Goods Sold COGS account on 31 December 20X3 we need to go through the ... View the full answer