Tracing Costs in a Job Company: On June 1, two jobs were in process at the Springer
Question:
Tracing Costs in a Job Company: On June 1, two jobs were in process at the Springer Landscaping Company. Details of the jobs are as follows:
Materials inventory (for example, plants and shrubs) on June I totaled $460, and $58 in materials were purchased during the month. Indirect materials of $8 were with- drawn from materials inventory. On June 1, finished goods inventory consisted of two jobs. Job No. A-07, costing $196 and Job No. A-21, with a cost of $79. Both of these jobs were transferred to cost of goods sold during the month. Also during June, Jobs No. A-15 and A-38 were completed. To complete Job No. A-15 required an additional $34 in direct labor. The completion costs for Job No. A-38 included $54 in direct materials and $100 in direct labor. Job No. A-40 was started during the period but was not finished. A total of $157 of direct materials was used (excluding the $8 indirect materials) during the period, and total direct labor costs during the month amounted to $204. Overhead has been estimated at 150 percent of direct labor costs, and this relation has been the same for the past few years.
Required: Compute costs of Jobs No. A-15 and A-38 and balances in the June 30 inventory accounts.
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