Question

Cullumber Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,600, direct labor $12,360, and manufacturing overhead $16,480. As of January 1, Job 49 had been completed at a cost of $92,700 and was part of finished goods inventory. There was a $15,450 balance in the Raw Materials Inventory account.

During the month of January, Cullumber Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $125,660 and $162,740, respectively. The following additional events occurred during the month.

1.		Purchased additional raw materials of $92,700 on account.
2.		Incurred factory labor costs of $72,100. Of this amount $16,480 related to employer payroll taxes.
3.		Incurred manufacturing overhead costs as follows: indirect materials $17,510; indirect labor $20,600; depreciation expense on equipment $12,360; and various other manufacturing overhead costs on account $16,480.
4.		Assigned direct materials and direct labor to jobs as follows.

Job No.		Direct Materials		Direct Labor
50		$10,300		$5,150
51		40,170		25,750
52		30,900		20,600

Answer 1

Cost of Goods Sold	163770
Finished Goods Inventory	163770

You need to record the cost of Job 49 & 50. Not Job 50 & 51

92700+71070=163770