CompuFurn, Inc. manufactures furniture for computer work stations. CompuFurn uses a job-order costing system and employs absorption costing. ComuFurn's work-in-process inventory on November 30 consisted of the following jobs.
Job No. Description Units Accumulated Cost
CC723 Computer caddy 20,000 $ 900,000
CH291 Chair 15,000 416,000
PS812 Printer stand 25,000 250,000
Total $ 1,566,000
On November 30, the company's finished-goods inventory, which is evaluated using the first-in, first-out (FIFO) method, consisted of four items.
Item Quantity and Unit Cost Accumulated Cost
Computer caddy 7,500 units @ $64 each $ 480,000
Chair 19,400 units @ $35 each 679,000
Printer stand 21,000 units @ $55 each 1,155,000
Desk 11,200 units @ $102 each 1,142,400
Total $ 3,456,400
At the end of November, the balance in CompuFurn's Materials Inventory account, which includes both raw materials and purchased parts, was $668,000. Additions to and requisitions from the materials inventory during the month of December included the following.
Additions Raw Materials Purchased Parts
Additions $ 242,000 $ 396,000
Requisitions:
Job CC723 51,000 104,000
Job CH291 3,000 10,800
Job PS812 124,000 87,000
Job DS444
(5,000 desks) 65,000 187,000
CompuFurn applies manufacturing overhead on the basis of machine hours. The company's manufacturing overhead budget for the year totaled $4,500,000. The company planned to use 900,000 machine hours during this period, which is the firm's estimated practical capacity. Through the first 11 months of the year, a total of 830,000 machine hours were used, and actual manufacturing overhead amounted to $4,139,000.
During the month of December, machine hours and labor hours consisted of the following:
Account Machine Hours Labor Hours Labor Cost
CC723 12,000 11,600 $ 122,400
CH291 4,400 3,600 43,200
PS812 18,500 14,300 200,600
DS444 14,000 12,500 138,000
Indirect labor - 3,000 29,400
Supervision - - 57,600
Total 48,900 45,000 $ 591,200
The jobs completed in December and the unit sales for that month are as follows:
Job No. Production Items Quantity
Completed Item Quantity
Shipped
CC723 Computer caddy 20,000 Computer caddy 17,500
CH291 Chair 15,000 Chair 21,100
DS444 Desks 5,000 Printer stand 18,000
Desk 6,000
1. Calculate the balance in CompuFurn, Inc.'s Work-in-Process Inventory account as of December 31. (Omit the "$" sign in your response.)