Question

Chirico Manufacturing Company uses job costing system. The following job cost records were provided for January, the company’s first month of operations: Job 1 Job 2 Job 3 Job 4 Job 5 Direct materials used $100 $400 $300 $200 $400 Direct labor cost 300 600 200 500 100 Allocated overhead 300 600 200 500 100 Total $700 $1,600 $700 $1,200 $600 Date started 01/02 01/10 01/20 01/25 01/22 Date completed 01/18 01/20 01/30 02/02 02/10 Date delivered to customer 01/20 01/25 02/02 02/05 02/15 There was no inventory of any kind at the beginning of January. 3. The amount of cost of goods manufactured for January is A) $2,300. B) $1,800. C) $4,800. D) $3,000. 4. The amount of cost of goods sold for January is A) $4,800. B) $2,300. C) $3,000. D) $1,800. 5. The amount of ending work in process as of January 31st is A) $3,000. B) $1,800. C) $2,300. D) $4,800.

Answer 1

Jobs	1	2	3	4	5
Direct materials used	$100.00	$400.00	$300.00	$200.00	$400.00
Direct labor cost	$300.00	$600.00	$200.00	$500.00	$100.00
Allocated Overhead	$300.00	$600.00	$200.00	$500.00	$100.00
Total Cost	$700.00	$1,600.00	$700.00	$1,200.00	$600.00
Date Completed	01/18	01/20	01/30	02/02	02/10
Date delivered to customer	01/20	01/25	02/02	02/05	02/15
Job Status	COGM	COGM	COGM
Job Status	COGS	COGS
Job Status				WIP	WIP
Cost of goods manufactured = Job 1 + Job 2 + Job 3 = $700+$1600+$700 = $3000
The answer is Option D.
Cost of goods sold = Job 1 + Job 2 = $700 + $1600 = $2300
The answer is Option B.
Ending work in process = Job 4 + Job 5 = $1200 + $600 = $1800
The answer is Option B.