Question

Triple C Ltd. is in the business of manufacturing cabinets, computer stands, and countertops. Most of its jobs are contracts for home builders. The following information is available for the month of July:

		Costs Incurred to July 1				Added in July
Job Number		Direct Materials		Direct Labour		Direct Materials		Direct Labour		Status at July 31
101		$9,000		$2,000		$ 0		$1,000		Completed but not sold
103		2,500		1,500		?		?		Not completed
111		600		100		500		3,000		Completed but not sold
115						800		200		Not completed

Activity in accounts:

Opening Account		Balance July 1		Purchased in July		Issued/Used in July		Ending Balance July 31
Direct Materials		$3,000		$6,000		$4,900		$ ?
Direct Labour						8,000

On July 1, finished goods inventory consisted of one job, 105, with a total cost of $18,000. This job was sold during July.

(Note: Manufacturing overhead is applied at 120% of the direct labour cost.)

Calculate the costs of completed jobs 101 and 111 as at July 31.

		Job 101		Job 111
Completed job costs		$		$

Answer 1

Please find below table useful to compute desired results: -

End results would be as follows: -