At the end of February, Gross Company had completed Jobs 60 and 61. Job 60 is for 25,000 units, and Job 61 is for 32,000 units. Using the data from Practice Exercises 19-1A, 19-2A, and 19-4A, determine (a) the balance on the job cost sheets for Jobs 60 and 61 at the end of February and (b) the cost per unit for Jobs 60 and 61 at the end of February.Answer:
a. Job 60 Job 61 Direct materials……………………………………………………… $224,000 $296,000 Direct labor…………………………………………………………… 360,000 477,000 Factory overhead…………………………………………………… 82,500 99,000 Total costs………………………………………………………… $666,500 $872,000 b. Job 60 Job 61 $26.66 $27.25 = $666,500 ÷ 25,000 units = $872,000 ÷ 32,000 units
Prepare a cost of goods sold budget for LifeTyme Publishers Inc., using the information in Practice Exercises 22-3A and 22-4A. Assume the estimated inventories on January 1, 2014, for finished goods and work in process were $28,000 and $17,000, respectively. Also assume the desired inventories on December 31, 2014, for finished goods and work in process were $23,700 and $19,500, respectively. Factory overhead was budgeted at $205,800.
Answer:
Finished goods inventory, January 1, 2014 $ 28,000
Work in process inventory, January 1, 2014 $ 17,000
Direct materials:
Direct materials inventory, January 1, 2014
(29,100 × $0.80) $ 23,280
Direct materials purchases (from PE 22–3A) 1,077,680
Cost of direct materials available for use $1,100,960
Less direct materials inventory,
December 31, 2014 (32,900 × $0.80) 26,320
Cost of direct materials placed in
production $1,074,640
Direct labor (from PE 22–4A) 460,560
Factory overhead 205,800
Total manufacturing costs 1,741,000
Total work in process during period $1,758,000
Less work in process inventory, December 31, 2014 19,500
Cost of goods manufactured 1,738,500
Cost of finished goods available for sale $1,766,500
Less finished goods inventory, December 31, 2014 23,700
Cost of goods sold $1,742,800
