Question

Example 5: Hanover Manufacturing begins operations on April 1. Information from job cost sheets shows the following: Manufacturing Costs Assigned (non-cumulative) Job April May June 15 $10,200 16 5,100 $6,400 3,600 5,900 $4,000 7,300 7,400 20 3,100 18 19 Job 15 was completed in April. Job 16 was completed in May. Job 18 was completed in June. Each job was sold in the month following completion Page 4 of 8 Instructions: Determine the following amounts: Work in process inventory, April 30 $ Finished goods inventory, April 30$ ni mwa Work in process inventory, May 31 $ Finished goods inventory, May 31 $ Work in process inventory, June 30 $ Finished goods inventory, June 30 $

Answer 1

Answer				$
1	Work in progress	Inventory	Apr-30	8700
2	Finished goods	Inventory	Apr-30	10200
3	Work in progress	Inventory	May-31	13200
4	Finished goods	Inventory	May-31	6400
5	Work in progress	Inventory	Jun-30	10500
6	Finished goods	Inventory	Jun-30	4000

Explanations :

Notes	Job 15 - Completed in April , hence FG of April - hence Finished Goods as on April 30
	Job 16 and 18 - Started in April but not completed in April - hence Work in progress - as on April 30
	Job 15 - Completed in April and sold in May - hence not to be considered as Finished Goods - as on May,31
	Job 16 - Completed in May - hence Finished Goods as on May 31
	Job 18 and 19 started in May but not completed by May,31 - hence Work in progress as on May 31
	Job 16 - Completed in May and sold in June - hence not part of Finished Goods as on June,30
	Job 18 - Completed in June , hence Finished Goods as on June 30
	Job 19 and 20 - Started in June, but not completed in June, hence Work in progress as on June 30