Question

Wayne 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		$7,100		$6,400				May
11		5,900		5,900		$3,300		June
12		1,500						April
13				6,500		6,100		June
14				6,800		4,000		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.

(a) What is the balance in Work in Process Inventory at the end of each month?

(b) What is the balance in Finished Goods Inventory at the end of each month?

(c) What is the gross profit for May, June and July?

Answer 1

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Wayne
Compilation of data	April	May	June
Job 10	7,100.00	6,400.00	-
Job 11	5,900.00	5,900.00	3,300.00
Job 12	1,500.00	-	-
Job 13	-	6,500.00	6,100.00
Job 14	-	6,800.00	4,000.00
Answer a	April	May	June
Job 10	7,100.00	-	-
Job 11	5,900.00	11,800.00	-
Job 12	-	-	-
Job 13	-	6,500.00
Job 14	-	6,800.00	10,800.00
Work in Process Inventory	13,000.00	25,100.00	10,800.00
Answer b	April	May	June
Job 10	-	13,500.00	-
Job 11	-	-	15,100.00
Job 12	1,500.00	-	-
Job 13	-	-	12,600.00
Job 14	-	-	-
Finished Goods Inventory	1,500.00	13,500.00	27,700.00
Answer c	May	June	July
Job 10	-	13,500.00	-
Job 11	-	-	15,100.00
Job 12	1,500.00	-	-
Job 13	-	-	12,600.00
Job 14	-	-	-
Cost of Job	1,500.00	13,500.00	27,700.00
Markup at 25%	375.00	3,375.00	6,925.00
Gross Profit	375.00	3,375.00	6,925.00