Question

Tierney Company begins operations on April 1. Information from job cost sheets shows the following. Manufacturing Costs Assigned Job Number April May June Month Completed 10 $ 5,700 $ 4,600 May 11 5,600 4,100 $ 2,200 June 12 1,700 April 13 4,900 5,200 June 14 6,400 4,300 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.

Answer 1

Manufacturing Costs Assigned

Job Number	April	May	June	Month Completed
10	$5,700	$4,600		May
11	$5,600	$4,100	$2,200	June
12	$1,700			April
13		$4,900	$5,200	June
14		$6,400	$4,300	Not complete

Work in process inventory at the end of each month:-

	Working	Work in process inventory
Apr-30	$5,700+$5,600	11,300
May-31	$5,600+$4,100+$4,900+$6,400	21,000
June-30	$6,400+$4,300	10,700

Finished Goods Inventory at the end of each month:-

	Working	Finished Goods Inventory
Apr-30		1,700
May-31	5,700+4,600	10,300
June-30	5,600+4,100+2,200+4,900+5,200	22,000

Gross Profit :-

	Working	Gross Profit
May	1,700*0.25	425
June	10,300*0.25	2,575
July	22,000*0.25	5,500

Previous month finished goods inventory *25%