Asked by Loretta Foshee on Jul 04, 2024
Verified
Garner Company begins operations on July 1 2017. Information from job cost sheets shows the following: \quad \quad \quad \quad Manufacturing Costs Assigned \text { Manufacturing Costs Assigned } Manufacturing Costs Assigned
JobNo. July August September 100$12,000$8,80010110,8009,700$12,0001025,00010311,8006,0001045,8007,000\begin{array}{rrrr}\text { JobNo. }& \text { July }& \text { August } & \text { September }\\100 & \$ 12,000 & \$ 8,800 & \\101 & 10,800 & 9,700 & \$ 12,000 \\102 & 5,000 & & \\103 & & 11,800 & 6,000 \\104 & & 5,800 & 7,000\end{array} JobNo. 100101102103104 July $12,00010,8005,000 August $8,8009,70011,8005,800 September $12,0006,0007,000 Job 102 was completed in July. Job 100 was completed in August and Jobs 101 and 103 were completed in September. Each job was sold for 60% above its cost in the month following completion.
Instructions
(a) Compute the balance in Work in Process Inventory at the end of July.
(b) Compute the balance in Finished Goods Inventory at the end of September.
(c) Compute the gross profit for August.
Work in Process Inventory
Represents the total cost of unfinished goods currently being manufactured.
Manufacturing Costs Assigned
Direct and indirect expenses attributed to the production of goods.
Job Cost Sheets
A document used to record and track the expenses associated with a specific job or project, aiding in the calculation of its total cost.
- Study and decode manufacturing expenditure records to rectify ambiguous aspects via job order costing strategies.
- Use job order costing procedures to ascertain the cumulative and unit-level costs of specific projects.
Verified Answer
ZK
Zybrea KnightJul 07, 2024
Final Answer :
(a) Work in Process I nventory
July Job 100$12,000 Job 10110,800‾ Balance, July 31$22,800\begin{array}{cc}\text { July}&\text { Job } 100 & \$ 12,000 \\&\text { Job } 101 & \underline{10,800}\\\text { Balance, July } 31&&\$22,800\end{array} July Balance, July 31 Job 100 Job 101$12,00010,800$22,800
(b) Finished Goods Inventory
Job 101$32,500 Job 10317,800‾ Balance, Sept.30 30$50,300\begin{array}{cc}\text { Job } 101 & \$ 32,500\\\text { Job } 103& \underline{17,800}\\\text { Balance, Sept.30 } 30&\$50,300\end{array} Job 101 Job 103 Balance, Sept.30 30$32,50017,800$50,300
(c) Gross Profit
Month Job Number Sales COGS Gross Profit August 102$8,000$5,000$3,000\begin{array}{ccccc}\text { Month} & \text { Job Number } & \text { Sales } & \mathrm{COGS} & \text { Gross Profit } \\\hline\text { August }&102&\$8,000&\$5,000&\$3,000\end{array} Month August Job Number 102 Sales $8,000COGS$5,000 Gross Profit $3,000
July Job 100$12,000 Job 10110,800‾ Balance, July 31$22,800\begin{array}{cc}\text { July}&\text { Job } 100 & \$ 12,000 \\&\text { Job } 101 & \underline{10,800}\\\text { Balance, July } 31&&\$22,800\end{array} July Balance, July 31 Job 100 Job 101$12,00010,800$22,800
(b) Finished Goods Inventory
Job 101$32,500 Job 10317,800‾ Balance, Sept.30 30$50,300\begin{array}{cc}\text { Job } 101 & \$ 32,500\\\text { Job } 103& \underline{17,800}\\\text { Balance, Sept.30 } 30&\$50,300\end{array} Job 101 Job 103 Balance, Sept.30 30$32,50017,800$50,300
(c) Gross Profit
Month Job Number Sales COGS Gross Profit August 102$8,000$5,000$3,000\begin{array}{ccccc}\text { Month} & \text { Job Number } & \text { Sales } & \mathrm{COGS} & \text { Gross Profit } \\\hline\text { August }&102&\$8,000&\$5,000&\$3,000\end{array} Month August Job Number 102 Sales $8,000COGS$5,000 Gross Profit $3,000
Learning Objectives
- Study and decode manufacturing expenditure records to rectify ambiguous aspects via job order costing strategies.
- Use job order costing procedures to ascertain the cumulative and unit-level costs of specific projects.
Related questions
Grant Marwick and Associates a CPA Firm Uses Job Order ...
Teasley Corporation Uses a Job-Order Costing System with a Single ...
Dancel Corporation Has Two Production Departments, Milling and Finishing ...
Cardosa Corporation Uses a Job-Order Costing System with a Single ...
Cavy Company Estimates That Total Factory Overhead Costs Will Be ...