P 3. On May 31, the inventory balances of Princess Designs, a manufacturer of high-quality childrens clothing,

Question:

P 3. On May 31, the inventory balances of Princess Designs, a manufacturer of high-quality children’s clothing, were as follows: Materials Inventory, $21,360;

Work in Process Inventory, $15,112; and Finished Goods Inventory, $17,120.

Job order cost cards for jobs in process as of June 30 had these totals:

image text in transcribed

The predetermined overhead rate is 130 percent of direct labor costs. Materials purchased and received in June were as follows:
June 4 $33,120 June 16 28,600 June 22 31,920 Direct labor costs for June were as follows:
June 15 payroll $23,680 June 29 payroll 25,960 Direct materials requested by production during June were as follows:
June 6 $37,240 June 23 38,960 On June 30, Princess Designs sold on account finished goods with a 75 percent markup over cost for $320,000.
Required 1. Using T accounts for Materials Inventory, Work in Process Inventory, Finished Goods Inventory, Overhead, Accounts Receivable, Payroll Payable, Sales, and Cost of Goods Sold, reconstruct the transactions in June.
2. Compute the cost of units completed during the month.
3. What was the total cost of goods sold during June?
4. Determine the ending inventory balances.
5. Jobs 24-A and 24-C were completed during the first week of July. No additional materials costs were incurred, but Job 24-A required $960 more of direct labor, and Job 24-C needed an additional $1,610 of direct labor.
Job 24-A was composed of 1,200 pairs of trousers; Job 24-C, of 950 shirts.
Compute the product unit cost for each job. (Round your answers to two decimal places.)
Job Order Costing in a Service Organization