Assessment 4: Production Process and Flow Costs Worksheet Problem 1 Solve the given problem based on the following information. Jordan Company's inventory records indicate the following information: Jordan Company Inventories (as of May 31) Inventory Beginning Inventory ($) Ending Inventory ($) Raw materials 72,000 110,000 Goods in process 156,000 250,000 Finished goods 160,000 198,000 Production activities for May (in $) Raw materials (credit purchases) 200,000 Company payroll cost (cash) 400,000 Miscellaneous overhead cost (other accounts credited) 170,500 Material Direct # 120,000 Indirect # 42,000 Labor Direct # 350,000 Indirect # 50,000 Overhead rate as a percent of direct labor 75% Sales on credit 1,000,000 # Compute the cost of goods transferred from production to finished goods, and compute the cost of goods sold. Cost of Goods Transferred and Cost of Goods Sold Raw materials (credit purchases) S 200,000 Direct Material 120,000 Direct Labor 350,000 Indirect Materials 42,000 Total Production Activities for May 712,000 Goods In Process Beginning Balance 156,000 Ending Inventory In Process (250,000 618,000 Cost of Goods Transferrei 250,000 Beginning Bal Finished Goods 160,000 Less - Ending Inventory Balance (198,000) Cost of Good Sold 580,000