Biology Forums - Study Force

Barr Manufacturing produces protective covers for eBookReaders. Since the covers must be customized to each eBookReaders model, Barr uses a job order costing system. On October 1, the company reported the following inventory balances:

Direct Materials Inventory

$30,000

Work in Process Inventory

145,000

Finished Goods Inventory

250,000

During October, the following events occurred:

1.	Barr purchased direct materials costing $410,000 on account.

2.	Barr used $425,000 in direct materials in production.

3.	Barr's employees clocked 17,000 direct labor hours at an average wage rate of

$10.00 per direct labor hour.

4.	The company incurred $169,000 in manufacturing overhead, including $20,000 in

indirect labor costs.

5.	Using direct labor hours as the application base, the company applied $162,000 of

manufacturing overhead to jobs worked on in October.

6.	The company completed production on jobs costing $860,000.

7.	The company delivered jobs costing $1,070,000 to customer.

Required:

a.	Calculate the ending October balance of the Direct Materials, Work in Process,

and Finished Goods Inventory accounts.

b.	Calculate total manufacturing costs for October.

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