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Sregor Company uses Job Costing to keep track of the costs of making custom order items. As the end of June, Job 1 and Job
Sregor Company uses Job Costing to keep track of the costs of making custom order items. As the end of June, Job 1 and Job 2 were not finished. Job 3 was not started until July. During July Job 1 and Job 2 were completed and Job 2 was sold. Job 3 was only partially complete. Sregor uses normal costing and it has been determined that overhead varies with Direct Labor Cost and its pre- determined rate is two and one-half times the Direct Labor Cost. Jobs are sold at 200% of total production costs. Marketing and administrative costs are $1,500 for the month. You have received the following cost data for the month of July. Keep in mind all data may not be used. Job 1 Job 3 Job 2 Total $2,500 $1,000 June 30 balance Direct materials 900 700 $4,500 Direct Labour 1,200 1,300 3,300 Overhead July 31 balance Required: a. Complete the Job Cost Sheet above (SHOW YOUR WORK). b. From the numbers above and costs, what is the cost of the work-in-process inventory at July 31? c. What is the cost of the finished goods inventory at July 31? d. What is the cost of goods sold at July 31? e. What was the selling price of the items sold in July? f. Prepare the cost of Goods Manufactured Statement in good form, below
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