Manufacturing companies deal with three different types of inventory: Raw Materi

Question

Manufacturing companies deal with three different types of inventory: Raw Material, Work-in-Process, and Finished Goods Inventory. From the following information calculate the new inventory balances as of the end of January and the total Cost of Goods Sold for the period of January. Job #1 Job #2 Job #3 Job #4 December 31, 20xx Beginning Balance Raw Material Inventory $55,000 DM Applied January Work-in-Process $30,000 Made up of the 4 jobs listed DL Applied January Job #1 $10,000 OV Applied January Job #2 $5,000 Job Totals Job #3 $12,000 January Additions Job #4 $3,000 Finished Goods Inventory $27,500 Raw Material     Beginning Balance Raw Material Purchases Purchased January January $22,000 Job #1 Job #2 Job #3 Direct Materials Applied to Jobs during January Job #4 Job #1 $3,500 Raw Material Total Job #2 $6,000 Job #3 $2,500 WIP Job #4 $8,000 Beginning Balance Job #1 January Direct Labor Applied to Jobs during January Job #2 January Job #1 $3,000 Job #3 January Job #2 $8,000 Job #4 January Job #3 $500 Job #1 Sold Job #4 $10,000 Job #3 Finished Goods WIP Total Overhead through the end of December is applied. Apply overhead at 25% of the direct labor cost to each job for January Finished Goods Job #1 was sold before the end of January. Beginning Balance Job #1 Job #3 was moved into Finished Goods before the end of January Job #3 Job #1 Finished Goods Total COGS Manufacturing companies deal with three different types of inventory: Raw Material, Work-in-Process, and Finished Goods Inventory. From the following information calculate the new inventory balances as of the end of January and the total Cost of Goods Sold for the period of January. Job #1 Job #2 Job #3 Job #4 December 31, 20xx Beginning Balance Raw Material Inventory $55,000 DM Applied January Work-in-Process $30,000 Made up of the 4 jobs listed DL Applied January Job #1 $10,000 OV Applied January Job #2 $5,000 Job Totals Job #3 $12,000 January Additions Job #4 $3,000 Finished Goods Inventory $27,500 Raw Material     Beginning Balance Raw Material Purchases Purchased January January $22,000 Job #1 Job #2 Job #3 Direct Materials Applied to Jobs during January Job #4 Job #1 $3,500 Raw Material Total Job #2 $6,000 Job #3 $2,500 WIP Job #4 $8,000 Beginning Balance Job #1 January Direct Labor Applied to Jobs during January Job #2 January Job #1 $3,000 Job #3 January Job #2 $8,000 Job #4 January Job #3 $500 Job #1 Sold Job #4 $10,000 Job #3 Finished Goods WIP Total Overhead through the end of December is applied. Apply overhead at 25% of the direct labor cost to each job for January Finished Goods Job #1 was sold before the end of January. Beginning Balance Job #1 Job #3 was moved into Finished Goods before the end of January Job #3 Job #1 Finished Goods Total COGS

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Inventory balances as at January 31 Raw material 57000 Work-in-process 44500 Finished Goods 15125

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