Job Costing
Operations of Valport Company for the year ended November 30, 2010, have been completed, and all of the accounting entries have been made for the year except the transfer of costs from Work-in-Process to Finished Goods for the jobs completed in November, and the transfer of costs from Finished Goods to Cost of Goods Sold for the jobs that have been sold during November. Summarized data that have been accumulated from the accounting records as of October 31, 2010, and for November 2010, are shown below.
Jobs N11-007, N11-013, and N11-015 were completed during November 2010. All completed jobs except Job N11-013 had been turned over to customers by the close of business on November 30, 2010.
Required
1. Prepare a Statement of Cost of Goods Manufactured for Valport Company for the year ended November 30, 2010.
2. Determine the amount of Cost of Goods Sold for the year ended November 30, 2010.
|
| November 2010 Activity | ||
Work-in-Process | Balance 10/31/10 | Direct Materials | Direct Labor | Machine-Hours |
Job No.: |
|
|
|
|
N11-007 | $ 87,000 | $ 1,500 | $ 4,500 | 300 |
N11-013 | 55,000 | 4,000 | 12,000 | 1,000 |
N11-015 | -0- | 25,600 | 26,700 | 1,400 |
D12-002 | -0- | 37,900 | 20,000 | 2,500 |
D12-003 | -0- | 26,000 | 16,800 | 800 |
Totals | $142,000 | $95,000 | $80,000 | 6,000 |
| Operating Activity | |
| Through | November |
| 10/31/10 | 2010 |
Manufacturing overhead applied |
|
|
Indirect materials | $ 125,000 | $ 9,000 |
Indirect labor | 345,000 | 30,000 |
Utilities | 245,000 | 22,000 |
Depreciation | 385,000 | 35,000 |
Total applied overhead | $1,100,000 | $96,000 |
Other items |
|
|
Material purchases* | $ 965,000 | $98,000 |
Direct labor costs | $ 845,000 | $80,000 |
Machine-hours | 73,000 | 6,000 |
| Account Balances at: | |
| 12/01/09 | 11/30/10 |
Materials inventory* | $105,000 | $85,000 |
Work-in-process inventory | 60,000 | 150,000 |
Finished goods inventory | 125,000 | 225,000 |
*Material purchases and materials inventory consist of both direct and indirect materials
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