Windows of the World (WOW) produces decorative windows in several styles and finishes. The company uses a job order costing system to accumulate product costs. Because much of the production process is automated, WOW has selected machine hours as its overhead application base.
In May, WOW worked on three jobs. Job 69 was started in April and completed and delivered to customers in May. Job 70 was started and finished in May, and at the end of May, the windows from the job were in the warehouse. Job 71 was started but not completed at the end of May.
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69
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70
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71
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Costs Added in April
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Direct materials
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$10,000
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Direct labor
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$ 1,000
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Overhead
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$ 450
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Machine hours
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10 MH
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Costs Added in May
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Direct materials
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$ 5,000
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$ 8,000
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$ 4,000
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Direct labor
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$24,000
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$12,000
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$ 500
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Machine hours
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600 MH
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500 MH
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15 MH
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Required
1. Calculate the total manufacturing cost for May.
2. Calculate the total cost of each of the three jobs as of the end of May.
3. Calculate the balance in the Work in Process Inventory account at the end of May.
4. Calculate the cost of goods manufactured for May.
5. Calculate the Cost of Goods Sold for May.
6. Calculate the Finished Goods Inventory balance at the end of May.