Exercise 15-10 Tierney Company begins operations on April 1. Information from jo

Question

Exercise 15-10

Tierney Company begins operations on April 1. Information from job cost sheets shows the following.

Job 12 was completed in April. Job 10 was completed in May. Jobs 11 and 13 were completed in June. Each job was sold for 25% above its cost in the month following completion.

Q1. What is the balance in Work in Process Inventory at the end of each month?
Q2.What is the balance in Finished Goods Inventory at the end of each month?
Q3.What is the gross profit for May, June, and July?

Manufacturing Costs Assigned

Job
Number

April

May

June

Month
Completed

Manufacturing Costs Assigned

Job
Number

April

May

June

Month
Completed

10 $6,400 $5,800 May 11 5,500 5,500 $2,300 June 12 1,600 April 13 6,100 6,400 June 14 6,900 4,000 Not complete

Explanation / Answer

1) Ending work in process inventory April 6400+5500 $11,900 May 5500+5500+6100+6900 $24,000 June 6900+4000 $10,900 2) Finished goods April 1600 $ 1,600 May 6400+5800 $12,200 June 5500+5500+2300+6100+6400 $25,800 3) Gross Profit May 1600 x .25 $     400 June 12200 x .25 $ 3,050 July 25800 x .25 $ 6,450

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