Question

Techuxia Corporation worked on four jobs during October: Job A256, Job A257, Job A258, and Job A260. At the end of October, the job cost sheets for these jobs contained the following data:

Techuxia Corporation worked on four jobs during October: Job A256, Job A257, Job A258, and Job A260. At the end of October, the job cost sheets for these jobs contained the following data: Job A256 Job A257 Job A258 Job A260 $ 1,020 $ 680 $ 0 $ 0 Beginning balance Charged to the jobs during October: Direct materials Direct labor Manufacturing overhead applied Units completed Units in process at the end of October Units sold during October $ 2,810 $ 4,030 $ 1,530 $ 3,650 $ 1,170 $ 820 $ 650 $ 440 $ 4,430 $ 1,840 $ 1,890 $ 560 01100 311 0 251 1470 670 205 Jobs A256 and A258 were completed during October. The other two jobs had not yet been completed at the end of October. There was no finished goods inventory on October 1. In October, overhead was underapplied by $1,200. The company adjusts its cost of goods sold every month for the amount of the underapplied or overapplied overhead. Required: 1. Using the direct method, what is the cost of goods sold for October? Cost of goods sold 2. What is the total value of the finished goods inventory at the end of October? Total value of the finished goods 3. What is the total value of the work in process inventory at the end of October? Total value of the work in process

Answer 1

Cost of Goods Sold 1) S10,441 Workings: JOB A256 JOB A258 so Beginning Balance $1,020 Direct Materials $2,810 $1,530 $650 Direct Labor $1,170 Manufacturing overhead applied Total cost (a) $4,430 $1,890 $9,430 $4,070 Units Completed (b) Unit Product Cost (c = a/ b) 205 110 $46 S37 Units Sold (d) 147 67 Unadjusted Cost of Goods Sold (e =c * d) S6,762 $2,479 Total unadjusted Cost of Goods Sold [S6,762 + $2,479] Add: Underapplied overhead Cost of goods sold $9,241 $1,200 S10,441 $4,259 2) Total vahue of the finished goods Workings: JOB A256 JOB A258 Units Completed 205 110 Less: Units sold 147 67 Units in Ending Inventory (a) 58 43 Unit Product Cost (b) $37 $46 Cost of ending finished goods inventory (c = a/b) S2,668 S1,591 Total cost of ending finished goods inventory $4,259 [S2,668 + $1,591] Total value of the work in process 3) $12,020 Workings: JOB A257 JOB A260 Beginning Balance S680 SO $3,650 Direct Materials $4,030 Direct Labor $820 $440 Manufacturing overhead applied Total cost (a) $1,840 $560 S7,370 $4,650 Total cost of ending work in process inventory [S7,370 + $4,650] $12,020