Russo Corporation had only one job in process during June -Job G431_ and had no
ID: 2441900 • Letter: R
Question
Russo Corporation had only one job in process during June -Job G431_ and had no finished goods inventory on July 1. Job G431 was started in May and finished during June. Data concerning that job appear below:Beg Balance $8,000
Charged to the job during June:
Direct Materials $12,000
Direct Labor $5,000
Manufacturing overhead applied $8,000
Units completed 200
Units in process at the end of June 0
Units sold during June 80
In June, overhead was under applied by $600. The company adjusts its cost of goods sold every month for the amount of the overhead that was under applied or over applied.
Required:
1. Using the direct method, what is the cost of goods sold for June?
2. What is the total value of the finished goods inventory at the end of June?
3. What is the total value of the work in process inventory at the end of June?
Explanation / Answer
1. Using the direct method, what is the cost of goods sold for June?
Begining WIP $8,000
Direct Materials $12,000
Direct labor $5,000
Manufacturing Overhead applied $8,000
$33,000
Unit cost = $33,000 / 200 = $165 per unit
Cost of goods sold = $165 x 80 units = $13,200
Add : Under applied Manufacturing overhead = $600
Cost of goods sold for June $13,800
=======
2. What is the total value of the finished goods inventory at the end of June.
(200 units - 80 units) x $165 = $19,800
3. What is the total value of the work in process inventory at the end of June? 0
Since Units in process at the end of June 0