Baillie Manufacturing began two jobs during May 2004. At the beginning of May, Job 411 was the only job in work-in-process inventory. There was no finished goods inventory. The cost in beginning work-in-process inventory for Job 411 consisted of \($4,000\) in direct material cost, \($6,000\) in direct labor cost, and manufacturing overhead cost of \($8,000\). Total manufacturing overhead for the month was \($22,050\). The following information is available for costs added during May:

Job 411 was completed and sold during May. Job 412 was completed but has yet to be sold, and Job 413 remains in production.
Baillie’s estimated manufacturing overhead for 2004 is \($277,875\), and the company estimates that the labor force will work 19,500 hours during the year. Baillie applies overhead to production based on direct labor hours.
Required:

a. Calculate the cost of the ending work-in-process inventory as of May 31, 2004.

b. Calculate the cost of the finished goods inventory as of May 31, 2004.

c. Calculate the cost of goods sold for May.

Transcribed Image Text:

Job 411 Direct material $2,000 Direct labor $2,500 Direct labor hours 225 . Job 412 $4,000 Job 413 $6,000 $6,500 $8,500 570 780