Question

Job-Order Cost Sheets, Balance in Work in Process and Finished Goods Golding Company, a job-order costing firm, worked on three jobs in July. Data are as follows: Balance, July 1 Direct materials Direct labor Machine hours Job 106 $21,310 $10,450 $16,000 500 Job 107 $6,250 $12,300 $12,200 300 Job 108 $0 $16,150 $24,000 1,000 Overhead is applied to jobs at the rate of $16 per machine hour. By July 31, Jobs 106 and 108 were completed. Jobs 102 and 106 were sold. Job 107 remained in process. On July 1, the balance in Finished Goods was $49,000 (consisting of Job 102 for $25,600 and Job 104 for $23,400). Golding prices its jobs at cost plus 30%. During July, variable marketing expenses were 5% of sales, and fixed marketing expenses were $2,000; administrative expenses were $4,800. (Round all amounts to the nearest dollar.)

Answer 1

1)				Job 106	Job 107	Job 108
	Beginning balance			21,310	6,250	0
	Direct Materials			10,450	12,300	16,150
	Direct labor			16,000	12,200	24,000
	Applied overhead			8000	4800	16000
	total			55,760	35,550	56150
2)	the balance in Work in process on July 31				35,550
		Work in process
	opening	27,560	Finished	111,910
	DM	38,900
	DL	52,200
	OH	28800
	End bal	35,550
3)	finished goods on July 31 is			79,550
		Finished goods
	opening	49,000	COGS	81,360	(job 102&106)
	WIP	111,910
	End bal	79,550
4)	the cost of goods sold for july is			81,360
5)	the operating income for the month of july is				13,540
	sales	(81360*130%)=		105768
	cost of goods sold			81,360
	Gross profit			24,408
	operating expense
	marketing exp			4068
	Adm expense			4,800
	fixed marketing expense			2,000
	operating income			13,540