This 6 page paper is a practical demonstration on how to calculate work in progress and different inventory totals as well as how to apply overheads to jobs. The paper answers questions in a case study provided by the student.
Name of Research Paper File: TS14_TEcostca.rtf
Unformatted Sample Text from the Research Paper:
we will show the student how to make the calculations to fill in the required fields. Materials Inventory Part 1 We are told that on the first of December there
is a balance of $1,500 in the materials inventory. We also do not have any mention of any new inventory being brought in, therefore, we need to consider the amount
that has left the materials inventory and entered the work in progress or finished goods. We do not use the $250 that has left the materials inventory that have been
used in the Swain job,. As this was already taken off and place in the WIP, or incomplete work inventory. Therefore the calculation is as follows Opening stock 1,500 Additional material
for Swain job 50 Hamway Job 150 Spurlin Job
95 Total Used 295 Closing stock 1,205 Work in progress
Inventory Here we need to look at the additional work that has been undertaken, and also take any off that has been sold and completed. We will assume that
the matching concept has been used. Opening Balance 3,550 Additions Hamway Job Materials 150 Labour 1,450 Overhead
1,058 WIP Job Total 2,658 Spurlin Job Materials 95 Labour 1,000 Overhead
730 WIP Job Total 1,825 8,033 Less Swain Job (3,550) Total WIP 31/12 200x 4,483 To calculate the overhead we are told this is