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January MOLDING Physical Flow of Units Work-in-Process - Beginning {12.01} Units Started this Period Units to Account for {12.02} Total transferred out {12.03} Work-in-Process - Ending {12.04} Total Accounted for {12.05} .06} 12.07} General Information The I See The Light Company has a related company that produces the figurines. They use process costing in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars. The material is added at the beginning of the process. The labor and overhead costs are assumed to be added uniformly throughout. Month of January Selected information for January is presented below. Note that the applied overhead rate was 50% of direct labor costs in the molding department. Molding Department Goods in-process as of January 1 were 2,800 figurines at a cost of $50,680.00. Of this amount, $44,800.00 was from raw materials added, $3,920.00 for labor and $1,960.00 for overhead. These 2,800 figurines were assumed to be 70.00% complete as to labor and overhead. During January, 22,000 units were started, $354,420.00 of materials and $33,980.00 of labor costs were incurred. I See The Light Projected Balance Sheet As of December 31, 20x1 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity 34,710.00 67,500.00 \begin{tabular}{|c|c|c|} \hline & \\ \hline & & \multirow{2}{*}{\begin{tabular}{c} 8,000.00 \\ - \\ 90,000.00 \\ \end{tabular}} \\ \hline & & \\ \hline \begin{tabular}{r} 500 \\ 0 \\ 3000 \end{tabular} & \begin{tabular}{r} 500@$16.00 \\ 0 \\ 000@$30.00 \end{tabular} & \\ \hline \end{tabular} $20,000.00 6,800.00 \begin{tabular}{r} 13,200.00 \\ $213,410.00 \\ \hline \hline \end{tabular} \$ 12,000.00 147,410.00 \begin{tabular}{lr} & 159,410.00 \\ \hline$213,410.00 \\ \hline \hline \end{tabular} Job Order Costing To keep records of the actual cost of a special order job, a Job Order Cost System has been developed. Overhead is applied at the rate of 50% of the direct labor cost. Job Order Costing Section On January 1, 20x2, Division S began Job 2407 for the Client, THE BIG CHILDREN STORE. The ob called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4,150 Lamp Kits @ \$16.40 per kit. 9-Jan 4,125 sets of Lamp Kits were requisitioned, including all those in the Beginning Inventory. 17-Jan Payroll of 580 Direct Labor Hours @ \$9.45 per hour. 30-Jan Payroll of 630 Direct Labor Hours @ \$9.70 per hour. 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were used or scrapped, and are a cost of normal processing

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