1. Megco Inc.uses the Job Cost System to value inventory and cost of goods sold. During the month of Feb. the following jobs were started and costs incurred:

JOB MATL. COST LABOR COST OVER HEAD TOTAL

101 2000 3000 10,000 15,000

102 3000 4500 12,000 1,9500

103 1100 3000 6000 10100

104 700 1200 3000 4900

105 500 3500 6000 10000

Jobs 101,102 and 104 were completed during the month. Jobs 101 and 104 were sold for a total of $30,000.

Required:

a. Show in total how the jobs cost moved through the "T" accounts below and provide the ending balance in each account.

WIP INVENTORY FINISHED GOODS INV COST OF GDS SOLD

b. What is the Gross Profit for the month?