Question

Sardin Company begins the month of March with $17,000 of work in process costs from Job 324. Information from job cost sheets shows the following additional costs assigned during March, April, and May of 2020: Manufacturing Costs AssignedJob No. March April May324 $26,000 325 20,000 $28,000 $15,000326 41,000 11,000 327 16,000 39,000328 34,000 51,000Job 324 was completed in March. Jobs 325 and 327 were completed in May, and Job 326 was completed in April. Jobs are sold during the month after completion. Total revenue for jobs sold during the 3-month period is $145,000.Required:a. Calculate the balances of the work in process.b. Calculate finished goods inventory accounts at the end of May.

Answer 1

Answer:

Sardin Company

a) Calculation of the balances of the work in process:

                                                                  March          April          May

Beginning work in process   Job 324    $17,000     $20,000  $98,000

Total Ending work in process               $20,000     $98,000  $85,000

                                                                  March          April          May

Beginning work in process   Job 324    $17,000     $20,000  $98,000

                                               Job 324     26,000    

Work started                          Job 325     20,000       28,000     15,000

                                                      326                         41,000

                                                      326                          11,000

                                                      327                         16,000    39,000

                                                      328                        34,000     51,000

Ending work in process        Job 325    (20,000)     (48,000)

                                                      327                        (16,000)

                                                      328                       (34,000)  (85,000)

Total Ending work in process               $20,000     $98,000  $85,000

Work completed                    Job 324     43,000

                                               Job 326                       52,000

                                               Job 327                                         55,000

                                              Job 325                                          63,000

Total costs of work completed            $43,000      $52,000   $ 118,000

b) Calculation of finished goods inventory accounts at the end of May:

                                                  March          April             May

Beginning finished goods        $0             $43,000       $52,000

Costs of work completed     $43,000      $52,000       $118,000

Finished goods available     $43,000      $95,000       $147,000

less Cost of goods sold          $0             $43,000        $52,000

Ending finished goods         $43,000      $52,000      $147,000

Explanation:

a) Manufacturing Costs Assigned

Job No.            March       April       May

324               $26,000

325                 20,000   $28,000  $15,000

326                                   41,000      11,000

327                                   16,000    39,000

328                                  34,000     51,000