McGinnis Company begins operations on July 1, 2018. Information from job cost sh
ID: 2546704 • Letter: M
Question
McGinnis Company begins operations on July 1, 2018. Information from job cost sheets shows the following: Manufacturing Costs Assigned Job No 100 101 102 103 104 Jul August $8,800 9,700 September $12,000 8,800 5,000 $12,000 11,800 5,800 6,000 7,000 Job 102 was completed in July. Job 100 was completed in August, and Jobs 101 and 103 were completed in September. Each job was sold for 80% above its cost in the month following completion. Instructions (a) Compute the balance in Work in Process Inventory at the end of July. (b) Compute the balance in Finished Goods Inventory at the end of September. (c) Compute the gross profit for August.Explanation / Answer
a) job no $ 100 12,000 101 8,800 Balance 20,800 Balance in WIP inventory at end of July $20,800 b) Balance in finished goods inventory job 101 30500 103 17800 Balance 48300 Balance in finished goods inventory $48,300 c) Gross profit job 102 (5000*180%) 9000 less cost of goods sold 5,000 Gross profit 4,000