Calculate quickers work in process ending inventory


Quicker Company uses a job order costing system. On May 1, Quicker Company's Work in Process Inventory account shows a beginning balance of $161,000. Production activity for May was as follows: Materials costing $91,000, along with operating supplies of $18,000, were requisitioned into production. Quicker Company's total payroll was $322,000, of which $73,000 was indirect labor. Overhead is applied at a rate of 110 percent of direct labor cost. Quicker's Cost of Goods Sold for the month of May was $682,000. Finished Goods Inventory was $77,500 on May 1 and $80,000 on May 31. (Quicker does not close out overhead accounts until year-end.)

a. Calculate Quicker's cost of goods completed for May.

b. Calculate Quicker's work in process ending inventory (May 31).

c. BONUS POINTS (2 points): One of the jobs that was started in May, Job 266, was completed in June. Job 266 was 100 special-order lamps.

The following costs had been applied to Job 266 as of June 1: direct materials, $1,500; direct labor, $1,300; overhead, $1,430. In June, $580 in direct materials cost and $900 of direct labor cost were added to complete Job 266. What was the cost per unit for Job 266? (Show your computations. Remember....overhead is applied at 110% of direct labor cost).

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Calculate quickers work in process ending inventory
Reference No:- TGS02545597

Now Priced at $15 (50% Discount)

Recommended (95%)

Rated (4.7/5)