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Top Shelf Office Equipment manufactures desks, chairs, file cabinets, and similar office products in batches for unique customer

requirements. Top Shelf accounts for production costs by customer job number; each order receives a sequential number. At the

beginning of April, raw materials inventories totaled $$8,500,$ manufacturing supplies amounted to $$1,200,$ and finished goods

inventories totaled $$6,000.$ Two jobs were in process: Job $522$ with assigned costs of $$5,640$ and Job $523$ with assigned costs of

$$2,400.$ The following information summarizes April manufacturing activities:

Raw materials costing $$25,000$ were purchased on account

Manufacturing supplies costing $$3,000$ were purchased on account

Started two new jobs, $524$ and $525$

Requisitioned direct materials for Jobs $523($$$3,400),524($$$12,500),$ and $525($$$9,600)$

Recorded job time tickets for direct labor $($paid at $$12$ per hour$)$ for Job $522(300$ hours$),$ Job $523(800$ hours$),$ Job $524$

$(1,200$ hours$),$ and Job $525(1,000$ hours$)$

Recorded indirect wages payable of $$6,400$

Used manufacturing supplies costing $$2,250$

Recorded depreciation on factory fixed assets of $$4,000$

Incurred $($on account$)$ miscellaneous manufacturing overhead costs of $$5,500$

Applied manufacturing overhead at the rate of $$6\mathrm{.}00$ of overhead per direct labor hour

Completed Jobs $522,523,$ and $524$

A$.$ Complete the Work$-$in$-$Process inventory analysis for each job on the next page.

B$.$ What was cost of goods manufactured for April?

C$.$ Analyze the manufacturing overhead control account for April. Was Top Shelf overapplied or underapplied, and by how

much? What happens to this balance?

A$.$ Analyze the Work$-$in$-$Process $($WIP$)$ account, by job and in total, for Top Shelf. Show beginning and ending balances and all increases and decreases.

$-2-$

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