Jupiter Manufacturing began business on January 1. During its first year of oper
ID: 2525123 • Letter: J
Question
Jupiter Manufacturing began business on January 1. During its first year of operation, Jupiter worked on five industrial jobs and reported the following information at year-end:
Job 1
Job 2
Job 3
Job 4
Job 5
Direct Materials
$1,000
$7,500
$4,000
$3,500
$1800
Direct Labor
12,000
20,000
13,000
12,000
900
Allocated Mfg. Overhead
1,500
6,000
2,500
7,500
200
Job completed:
Jun 30
Sep 1
Oct 15
Nov 1
Not completed
Job sold:
Jul 10
Sep 12
Not sold
Not sold
N/A
Revenues:
$25,000
$39,000
N/A
N/A
N/A
What was the balance in Work-in-Process Inventory at year-end?
What was the balance in Finished Goods Inventory at year-end?
What was Cost of Goods Sold for the year?
Job 1
Job 2
Job 3
Job 4
Job 5
Direct Materials
$1,000
$7,500
$4,000
$3,500
$1800
Direct Labor
12,000
20,000
13,000
12,000
900
Allocated Mfg. Overhead
1,500
6,000
2,500
7,500
200
Job completed:
Jun 30
Sep 1
Oct 15
Nov 1
Not completed
Job sold:
Jul 10
Sep 12
Not sold
Not sold
N/A
Revenues:
$25,000
$39,000
N/A
N/A
N/A
Explanation / Answer
Calculate Total manufacturing cost :
Balance in work in process = 2900
Balance in finished goods inventory = (19500+23000) = 42500
Balance of cost of goods sold = (14500+33500) = 48000
Job 1 Job 2 Job 3 Job 4 Job 5 Direct material 1000 7500 4000 3500 1800 Direct labour 12000 20000 13000 12000 900 Allocated mfg overhead 1500 6000 2500 7500 200 Total manufacturing cost 14500 33500 19500 23000 2900