Question

8 Table 9

Delaware Furniture Company constructs custom furniture. Job cost records during the second and third quarters of 20X5 are shown below.

Job. Date Date Total cost Manufacturing

No. Started Finished of Job on Costs Added in

July 1 July

110 June 1 July 15 $32,840 $43,600

111 June 3 August 25 18,100 177,200

112 July 2 July 30 — 145,000

113 July 6 July 31 — 82,800

114 July 15 August 19 — 126,400

Refer to Table 9. Assuming Jobs No. 110 and 112 are sold to customers in July, what is the total cost of goods sold in July?

Answer 1

Answer:

Job 110

Job started on: June 1

Job Finished on: July 15

Sold in: July

Cost of goods sold of Job 110 = Total cost of Job as on July 1 + Manufacturing cost added in July

= $32,840 + $43,600

= $76,440

Job 112:

Job started on: July 2

Job Finished on: July 30

Sold in: July

Cost of goods sold of Job 112 = Total cost of Job as on July 1 + Manufacturing cost added in July

= $0 + $145,000

= $145,000

Assuming Jobs No. 110 and 112 are sold to customers in July, the total cost of goods sold in July = $76,440 + $145,000 = $221,440

Total cost of goods sold in July = $221,440