Question

The information below was taken from the job cost sheets of Igmund Manufacturing.

Job Number	Manufacturing Costs as of June 30				Manufacturing Costs in July
101	$	6,600
102		5,280
103		960			$	3,600
104		4,080				7,200
105						8,400
106						2,900

During July, jobs no. 103 and 104 were completed, and jobs no. 101, 102, and 104 were delivered to customers. Jobs no. 105 and 106 are still in process at July 31.

a. Compute the work in process inventory at June 30.

b. Compute the finished goods inventory at June 30.

c. Compute the cost of goods sold during July.

d. Compute the work in process inventory at July 31.

e. Compute the finished goods inventory at July 31.

Answer 1

Solution 1:

work in process inventory at June 30 = Job 103 and 104 = 960+ 4080 = $5,040

Solution 2:

finished goods inventory at June 30 = Job 101 and 102 = 6600 + 5280 = $11,880

Solution 3:

cost of goods sold during July = Total Cost of  jobs no. 101, 102, and 104

= 6600 + 5280 + 4080 + 7200

= $23,160

Solution 4:

work in process inventory at July 31 = Job 105 and 106 = 8400 + 2900 = $11,300

Solution 5:

finished goods inventory at July 31 = Total cost of Job 103 = 960+ 3600 = $4,560