Question - 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 Number
|
Beginning Balance
|
Direct Materials
|
Direct Labour
|
Machine Hours
|
|
XJ-107
|
$118,600
|
$4,000
|
$8,400
|
150
|
|
ST-211
|
121,450
|
2,500
|
12,160
|
300
|
|
XD-108
|
21,800
|
86,400
|
36,650
|
3,100
|
|
SL-205
|
34,350
|
71,800
|
32,175
|
2,700
|
|
RX-115
|
0
|
18,990
|
21,845
|
1,400
|
By 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: What was the balance in Finished Goods inventory at the end of January?