Questions 1 and 2 are based on the following information Great Scot! Company use
ID: 2331898 • Letter: Q
Question
Questions 1 and 2 are based on the following information Great Scot! Company uses a job-order costing system. The data below pertain to June Direct Costs Added During June Job Number 997 998 June 1 Work in Process Inventory $17,500 12,000 31,900 Direct Materials $2,500 3,000 1,000 Direct Labor $1,000 600 1,500 Great Scot! applies overhead to jobs at the rate of 300 percent of direct labor cost. Job 997 was completed during June and transferred to finished goods. Jobs 998 and 999 were still in process on June 30 1. What is the Work in Process Inventory balance on June 30? 2. What is June's cost of goods manufactured?Explanation / Answer
Answers
Job 997
Job 998
Job 999
TOTAL
Beginning WIP
$ 17,500.00
$ 12,000.00
$ 31,900.00
$ 61,400.00
Direct Material Added
$ 2,500.00
$ 3,000.00
$ 1,000.00
$ 6,500.00
Direct Labor
$ 1,000.00
$ 600.00
$ 1,500.00
$ 3,100.00
Overhead [300% of above labor cost]
$ 3,000.00
$ 1,800.00
$ 4,500.00
$ 9,300.00
Total Cost
$ 24,000.00
$ 17,400.00
$ 38,900.00
$ 80,300.00
Status
Completed and Transferred
Work in Process
Work in Process
Work in Process Inventory balance June 30
$ -
$ 17,400.00
$ 38,900.00
$ 56,300.00 = ANSWER
Answer: Work In Process inventory on June 30 = Job 998 + 999 = $ 56,300
Beginning WIP [see ‘total’ column in Req 1]
$ 61,400.00
Direct Material Added [see ‘total’ column in Req 1]
$ 6,500.00
Direct Labor [see ‘total’ column in Req 1]
$ 3,100.00
Overheads applied [see ‘total’ column in Req 1]
$ 9,300.00
Total cost of WIP
$ 80,300.00
Less: Ending WIP [Answer for Req 1, Calculated above]
$ 56,300.00
Cost of Goods manufactured
$ 24,000.00
Answer: Cost of Goods manufactured = $ 24,000
Job 997
Job 998
Job 999
TOTAL
Beginning WIP
$ 17,500.00
$ 12,000.00
$ 31,900.00
$ 61,400.00
Direct Material Added
$ 2,500.00
$ 3,000.00
$ 1,000.00
$ 6,500.00
Direct Labor
$ 1,000.00
$ 600.00
$ 1,500.00
$ 3,100.00
Overhead [300% of above labor cost]
$ 3,000.00
$ 1,800.00
$ 4,500.00
$ 9,300.00
Total Cost
$ 24,000.00
$ 17,400.00
$ 38,900.00
$ 80,300.00
Status
Completed and Transferred
Work in Process
Work in Process
Work in Process Inventory balance June 30
$ -
$ 17,400.00
$ 38,900.00
$ 56,300.00 = ANSWER
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