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Carver Test Systems manufactures automated test systems that perform quality inspections during and at the completion of the manufacturing process. As most manufacturing processes are unique, Carver’s test equipment is designed to customer specifications, and each system has a selling price in excess of $300,000. The company uses a job-order cost system based on the full absorption of actual costs and applies overhead on the basis of machine hours using a predetermined overhead rate. For the fiscal year ended November 30 budgeted manufacturing overhead was $1,960,000, and the expected activity level was 98,000 machine hours. Data regarding several jobs at Carver are presented below. By the end of November all jobs but RX-115 were completed, and all completed jobs had been delivered to customers with the exception of SL-205.Required:(a) Determine the balance in the Finished Goods Inventory on November 30.(b) Compute the cost of goods manufactured for November.(c) Compute the Cost of Goods Sold for November.(d) Determine the balance in Work-In-Process Inventory on November 30.
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