Homework: Finlon Upholstery, Inc
Finlon Upholstery, Inc. uses a job-order costing system to accumulate manufacturing costs. The company's work-in-process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date.Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor hours, multiplied by the budgeted direct-labor rate.) Budgeted totals for 20x2 for direct labor and manufacturing overhead are $4,200,000 and $5,460,000, respectively. Actual results for the year follow.
Direct material used .............. $ 5,600,000
Direct labor ....................... 4,350,000
Indirect material used...............65,000
Indirect labor .................... 2,860,000
Factory depreciation ............. 1,740,000
Factory insurance ................ 59,000
Factory utilities ................ 830,000
Selling and administrative expenses .. 2,160,000
Total ............................. $17,664,000
Job no. 2077 was completed in January 20x2; there was no work in process at year-end. All jobs produced during 20x2 were sold with the exception of job no. 2143, which contained direct-material costs of $156,000 and direct-labor charges of $85,000. The company charges any under- or overapplied overhead to Cost of Goods Sold.
Problems:
Determine the additions to the Work-in-Process Inventory account for direct material used, direct labor, and manufacturing overhead.
Compute the amount that the company would disclose as finished-goods inventory on the December 31, 20x2, balance sheet.
Prepare the journal entry needed to record the year's completed production.
Compute the amount of under- or overapplied overhead at year-end, and prepare the necessary journal entry to record its disposition.
Format your homework according to the following formatting requirements:
(1) The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
(2) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
(3) Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.