Question

Job Exercise 2-10 (Video) Tierney Company begins operations on April 1. Information from job cost sheets shows the following. Manufacturing Costs Assigned Month Number April May June Completed $7,200 $5,700 May 5,700 4,300 $3,600 June 1,600 April 6,000 5,500 June 6,100 3,000 Not complete Job 12 was completed in April. Job 10 was completed in May. Jobs 11 and 13 were completed in June. Each job was sold for 25% above its cost in the month following completion. What is the balance in Work in Process Inventory at the end of each month? Work in Process Inventory April 30 May 31 June 30

Answer 1

Job number		April	May	june
	10	7200	5,700		12900		completed	May
	11	5700	4,300	3,600	13600		completed	June
	12	1600			1600		completed	April
	13		6000	5,500	11500		completed	june
	14		6100	3,800	9900		WIP
	Total	14500	22100	12900	49500
Balance in WIP each month							Total
Job 10 and 11		30-Apr		7200+5700			12900
Job 11, 12, 13		31-May		5700+4300+6000+6100			22100
Job 13, 14		30-Jun		6100+ 3800			9900
		Balance in the finished goods inventory
							Total
Job 12		30-Apr		1600			1600
Job 10		31-May		7200+5700			12900
Job 11 and 13		30-Jun		5700+4300+3600+6000+5500			25,100
		Gross profit 25% on Finished goods inventory
		May	1600*25%=			400
		june	12900*25%=			3225
		july	25100*25%=			6275