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

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?

Transcribed Image Text:

Total Total Cost of Job at April 30 $1,300 Manufacturing Cost Added in Date Job No. Started Finished Sold 4/26 5/12 5/31 5/13 5/31 $ 900 6/12 7/6 6/14 7/9 $300 $ 400 $1,400 6/23