Pip Squeaks Inc. is a manufacturer of furnishings for infants and children. The company uses a job order cost system. Pip Squeaks’ Work in Process Inventory on April 30, 2010, consisted of the following jobs: The company’s Finished Goods Inventory, carried on a FIFO (first-in, first-out) basis, consists of five items: Pip Squeaks applies factory overhead on the basis of direct labor hours. The company’s factory overhead budget for the fiscal year ending May 31, 2010, totaled $4,500,000, and the company planned to work 600,000 direct labor hours during this year. The rough the first 11 months of the year, a total of 555,000 direct labor hours were worked, and total factory overhead amounted to $4,273,500. At the end of April, the balance in Pip Squeaks’ Raw Material Inventory account, which includes both raw material and purchased parts, was $668,000. Additions to and requisitions from the material inventory during May included the following: During May, Pip Squeaks’ factory payroll consisted of the following: The jobs that were completed in May and the unit sales for May are as follows: Items Quantity Shipped Cribs ……. 17,500 Playpens …. 21,000 Strollers ….. 14,000 Dressers ….. 18,000 Carriages ….. 6,000 a. Describe when it is appropriate for a company to use a job order costing system. b. Calculate the dollar balance in Pip Squeaks’ Work in Process Inventory account as of May 31, 2010. c. Calculate the dollar amount rela
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