Question

Midterm 1 The Lee Company uses a job-order cost system. The following data were recorded for June: Job Number 235 236 237 June 1 Work in Process Inventory $2,500 $1,500 $1,000 $ 800 Added During June Direct Direct Materials Labor $ 600 S 400 S 800 $1,000 $1,200 $1,750 $1,500 $2,250 238 Overhead is charged to production at 80% of direct materials cost. Jobs 235, 237, and 238 were completed during June and transferred to finished goods. Jobs 235 and 238 have been delivered to customers. (a.) What was the Cost of Goods Sold for June? (b.) What is the Work-in-Process Inventory at the end of June?

Answer 1

June 1- Work in progress Add: Direct Material Add: Direct Labor Add: Overhead Cost Job Number 235 236 237 238 $2,500 $1,500 $1,000 $800 $600 $800 $1,200 $1,500 $400 $1,000 $1,750 $2,250 $480 $640 $960 $1,200 [$600x 80%] [$800x 80%] ($1200x 80%] [$1500x 80%] $3,980 $3,940 $4,910 $5,750 Total Ans a Cost of Good Sold Job Number: 235 Job Number: 238 Cost of Good Sold $3,980 $5,750 $9,730 Ans b Work-in-progress Job Number: 235 $3,940