R2D2 Test Systems manufactures automated testing equipment. The company uses a job-order costing system and applies overhead on the basis of machine hours (MH). At the beginning of the year, estimated manufacturing overhead was $1,960,000, and the estimated machine hours were 98,000. Data regarding several jobs at R2D2 are presented below. Job NumberBeginning BalanceDirect MaterialsDirect LabourMachine HoursXJ-107$118,600$4,000$8,400150ST-211121,4502,50012,160300XD-10821,80086,40036,6503,100SL-20534,35071,80032,1752,700RX-115018,99021,8451,400By the end of the first month (January), all jobs but RX-115 were completed, and all completed jobs had been delivered to customers except for SL-205. Required:1) What was the balance in Finished Goods inventory at the end of January?
Originally posted 2018-07-07 18:53:17. Republished by Blog Post Promoter