Question

Chapter 19.4

Homework: Chapter 19 HOMEWUIK 4 of 4 (0 complete) Score: 0 of 22 pts P19-28A (similar to) Stratton Manufacturing makes carrying cases for portable electronic devices its costing records yield the following information Click the icon to view the costing records read the futements Requirement 1. Which type of costing system is Stratton using? What piece of data did you base your answer on? Stration uses a system we know this because Stratton's costing records show costs being accumulated to

Answer 1

1. Stratton uses a job order costing system. We know this because Stratton's costing records show costs being accumulated for each job.

2.

Job No.	Status at
	November 30	December 31
1	Cost of Goods Sold	Cost of Goods Sold
2	Finished Goods Inventory	Cost of Goods Sold
3	Work in Process Inventory	Cost of Goods Sold
4	Work in Process Inventory	Finished Goods Inventory
5	-	Cost of Goods Sold
6	-	Finished Goods Inventory

	Account Balances at
	November 30
Work in Process Inventory	$                                       1,100
Finished Goods Inventory	$                                       1,600
Cost of Goods Sold	$                                       1,100

Job No.	Account Balances at December 31
	Work in Process Inventory	Finished Goods Inventory	Cost of Goods Sold
1			$                                       1,100
2			$                                       1,600
3			$                                       1,200
4		$                                       2,400
5			$                                           550
6	$                                            400
Total $	$                                            400	$                                       2,400	$                                       4,450

3.

Date	General Journal	Debit	Credit
11/12	Finished Goods Inventory	1100
	Work in Process Inventory		1100
11/30	Finished Goods Inventory	1600
	Work in Process Inventory		1600
12/12	Finished Goods Inventory	550
	Work in Process Inventory		550
12/24	Finished Goods Inventory	1200
	Work in Process Inventory		1200
12/29	Finished Goods Inventory	2400
	Work in Process Inventory		2400

4.

Date	General Journal	Debit	Credit
12/27	Accounts receivable	1500
	Sales revenue		1500
	(To record the sale of job 3)
12/27	Cost of goods sold	1200
	Finished Goods Inventory		1200
	(To record cost of job sold)

5. Gross profit for Job 3 = Sales - Cost of goods sold = $1500 - $1200 = $300