Job cost; journal entries; inventory analysis; manufacturing statement similar to Self...

Job cost; journal entries; inventory analysis; manufacturing statement

similar to Self-Study Problem 2

Adirondack Manufacturing Co. manufactures engines that are made only on customers’ orders and to their specifications. During January, the company worked on Jobs 007, 008, 009, and 010. The following figures summarize the cost records for the month:

Jobs 007 and 008 have been completed and delivered to the customer at a total selling price of $426,000, on account. Job 009 is finished but has not yet been delivered. Job 010 is still in process. There was no work in process at the beginning of the month.

Required:

1. Prepare the summary journal entries for the month to record the distribution of materials, labor, and overhead costs.

2. Prepare a summary showing the total cost of each job completed during the month or in process at the end of the month. Also, determine the cost of the inventories of completed engines and engines in process at the end of the month.

3. Prepare the journal entries to record the completion of the jobs and the sale of the jobs.

4. Prepare a statement of cost of goods manufactured.

Reference:

Job Cost; Journal Entries; Inventory Analysis; Manufacturing Statement

Mission Valley Manufacturing Co. manufactures engines that are made only on customers’ orders and to their specifications. During January, the company worked on Jobs 2525, 2526, 2527, and 2528. The following figures summarize the cost records for the month:

Jobs 2525 and 2526 have been completed and delivered to the customers at a total selling price of $852,000, on account. Job 2527 is finished but has not yet been delivered. Job 2528 is still in process. There was no work in process at the beginning of the month.

Required:

1. Prepare the summary journal entries for the month to record the distribution of materials, labor, and overhead costs.

2. Prepare a summary showing the total cost of each job completed during the month or in process at the end of the month. Also, determine the cost of the inventories of completed engines and engines in process at the end of the month.

3. Prepare the journal entries to record the completion of the jobs and the sale of the jobs.

4. Prepare a statement of cost of goods manufactured.