The job order cost sheets for LA Inc. show the following information about special orders for June and July of the current year:

The company prices its jobs to make a 50 percent gross profit on sales. Operating expenses for July totaled $7,500, and the company€™s income tax rate is 15 percent of net income before income taxes.

INSTRUCTIONS
1. From this data, compute the following:
a. Work in Process Inventory, July 1
b. Finished Goods Inventory, July 1
c. Cost of Goods Sold for July
d. Work in Process Inventory, July 31
e. Finished Goods Inventory, July 31
f. Sales for July
2. Prepare a condensed income statement for LA Inc. for the month of July.

Transcribed Image Text:

Manufacturing Costs Job Number June July Status of Job JU-688 $15,000 Sold, 7/3 4,500 JU-689 Completed, 6/27 1,900 $3,850 JU-690 Completed, 7/8 Sold, 7/10 4,500 JU-691 1,500 3,200 JU-692 300 Sold, 7/16 5,000 JL-701 Sold, 7/22 7,000 JL-702 Completed, 7/20 In process, 7/31 In process, 7/31 JL-703 6,000 800 JL-704