Frugal Car reconditions engines. Its job costing records yield the following information. Frugal Car uses a perpetual

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Frugal Car reconditions engines. Its job costing records yield the following information. Frugal Car uses a perpetual inventory system.
Frugal Car reconditions engines. Its job costing records yield the

Requirements
1. Compute Frugal Car's cost of (a) Work in Process Inventory at May 31 and June 30,
(b) Finished Goods Inventory at May 31 and June 30, and (c) Cost of Goods Sold for May and June.
2. Make summary journal entries to record the transfer of completed jobs from Work in Process to Finished Goods for May and June.
3. Record the sale of Job 5 for $1,500.
4. Compute the gross profit for Job 5. What costs must the gross profit cover?

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Related Book For  book-img-for-question

Managerial Accounting

ISBN: 978-0132890540

3rd edition

Authors: Karen W. Braun, Wendy M. Tietz

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