Determine flow of costs through accounts (Learning Objectives 2, SJ CarNut reconditions engines. Its job cost records yield the following information. CarNut uses a perpetual inventory system.

Requirements 1. Compute CarNut’s cost of

(a) work in process inventory at March 31 and April 30,

(b) finished goods inventory at March 31 and April 30, and

(c) cost of goods sold for March and April.
2. Make summary journal entries to record the transfer of completed jobs from Work in Process Inventory to Finished Goods Inventory for March and April.
3. Record the sale of Job 5 on account for $1,600.
4. Compute the gross profit for Job 5. What costs must the gross profit cover?

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Total Cost Job Date of Job at Total Manufacturing Cost Added in No. Started Finished Sold March 31 April 1 2/26 3/7 3/9 $1,400 2 2/3 3/12 3/13 1,600 3 3/29 3/31 4/3 1,300 4 3/31 4/1 4/1 500 $ 400 5 4/8 4/12 4/14 700 6 4/23 5/6 5/9 1,200