Redmond Manufacturing Company began operations on January 1. The company was affected by the following events during
Question:
Redmond Manufacturing Company began operations on January 1. The company was affected by the following
events during its first year of operation:
a) Company issued stock to owners for $100,000 cash.
b) Purchased materials, $8,000 cash.
c) Transferred $4,000 of direct materials to production (Job #1: $3,000; Job #2: $1,000).
d) Paid direct labor costs, $5,000 (Job #1: $2,500; Job #2: $2,500).
) Paid $3,000 cash for various actual overhead costs.
f) Allocated overhead to work in process at 60% of direct labor cost.
g) Completed Job #1 and transferred it to finished goods.
h) Sold Job #1 for $8,300 cash.
) Paid $200 cash for selling and administrative expenses.
Required:
1) Determine the ending balance in the Work in Process account.
2) Determine the cost of goods sald.
3) Compute the amount of gross profit earned on Job #1.
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura