Waterway Fabricators produces protective covers for smart phones. Since the covers must be customized to each smart phone model, Waterway uses a job order costing system. On September 1, the company reported the following inventory balances:
Direct Materials - $29,300
Work in Process - $151,000
Finished Goods - $257,000

During September, the following events occurred:
1. Waterway purchased direct materials costing $1,041,000 on account.
2. Waterway used $427,000 in direct materials in production.
3. Waterway’s employees clocked 24,000 direct labor hours at an average wage rate of $13.01 per direct labor hour.
4. The company incurred $179,000 in manufacturing overhead, including $26,000 in indirect labor costs.
5. Using direct labor hours as the application base, the company applied $164,000 of manufacturing overhead to jobs worked on in September.
6. The company completed production on jobs costing $855,000.
7. The company delivered jobs costing $1,075,000 to customers.

Calculate the ending September balance of the Direct Materials, Work in Process, and Finished Goods Inventory accounts.
Ending September Balance
Direct Materials $.
Work in Process $.
Finished Goods $.

Materials Ending Inventory            $ 29,914  

Ending Work In Process                     214420

Closing Finished Goods              $ 37,000

Explanation:

                                                                            Dr                     Cr

Direct Materials (opening Inventory)                $29,300

Add Purchases                                                  $1,041,000

Less Ending Inventory                                    $ 29,914  

Direct Materials Used                                                                   $427,000

Conversion Costs

Add Direct Labor                                              $ 312240

Factory Over Head                                            $ 179,000           $491240    

Add Beginning Work In Process                                                    $151,000

Less Ending Work In Process                                                         214420

Cost Of Goods Manufactured                                                       $855,000

Add opening  Finished Goods                                                     $257,000

Cost of Goods Available for Sale                                                   $1112,000

Less Closing Finished Goods                                                          $ 37,000

Cost Of Goods Sold                                                                         $1,075,000

Working  

Costs incurred during the period

Direct Materials Used In Production  $427,000

Direct Labor = 24000*$13.01=            $ 312240

Manufacturing Overheads                  $ 179,000