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Manufacturing companies deal with three different types of inventory: Raw Material, Work-in-Process, and Finished Goods Inventory. From the following information calculate the new inventory balances
Manufacturing companies deal with three different types of inventory: Raw Material, Work-in-Process, and Finished Goods Inventory. From the following information calculate the new inventory balances as of the end of January and the total Cost of Goods Sold for the period of January. | ||||||||||
Job #1 | Job #2 | Job #3 | Job #4 | |||||||
December 31, 20xx | Beginning Balance | |||||||||
Raw Material Inventory | $55,000 | DM Applied January | ||||||||
Work-in-Process | $30,000 | Made up of the 4 jobs listed | DL Applied January | |||||||
Job #1 | $10,000 | OV Applied January | ||||||||
Job #2 | $5,000 | Job Totals | ||||||||
Job #3 | $12,000 | January Additions | ||||||||
Job #4 | $3,000 | |||||||||
Finished Goods Inventory | $27,500 | Raw Material | ||||||||
Beginning Balance | ||||||||||
Raw Material Purchases | Purchased January | |||||||||
January | $22,000 | Job #1 | ||||||||
Job #2 | ||||||||||
Job #3 | ||||||||||
Direct Materials Applied to Jobs during January | Job #4 | |||||||||
Job #1 | $3,500 | Raw Material Total | ||||||||
Job #2 | $6,000 | |||||||||
Job #3 | $2,500 | WIP | ||||||||
Job #4 | $8,000 | Beginning Balance | ||||||||
Job #1 January | ||||||||||
Direct Labor Applied to Jobs during January | Job #2 January | |||||||||
Job #1 | $3,000 | Job #3 January | ||||||||
Job #2 | $8,000 | Job #4 January | ||||||||
Job #3 | $500 | Job #1 Sold | ||||||||
Job #4 | $10,000 | Job #3 Finished Goods | ||||||||
WIP Total | ||||||||||
Overhead through the end of December is applied. Apply overhead at 25% of the direct labor cost to each job for January | ||||||||||
Finished Goods | ||||||||||
Job #1 was sold before the end of January. | Beginning Balance | |||||||||
Job #1 | ||||||||||
Job #3 was moved into Finished Goods before the end of January | Job #3 | |||||||||
Job #1 | ||||||||||
Finished Goods Total | ||||||||||
COGS |
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