Victor Ramos is a contractor specializing in custom-built jacuzzis. On May 1, 2020, his ledger contains the following data.

Raw Materials Inventory$30,000

Work in Process Inventory13,080

Manufacturing Overhead2,500 (dr.)

Subsidiary data for Work in Process Inventory on May 1 is as follows:

Job Cost Sheets

Job

by Customer

Direct Materials

Direct Labor

Manufacturing Overhead

Clark

$2,600

$2,100

$1,680

Douglas

2,000

1,200

960

Evans

1,100

800

640

$5,700

$4,100

$3,280

During May, the following costs were incurred: (a) raw materials purchased $4,300 (b) manufacturing overhead paid $1,600.

A summary of materials requisition slips and time tickets for the month of May reveals the following.

Job by Customer

Materials Requisition Slips

Time Tickets

Clark

$ 500

$ 400

Douglas

800

1,000

Evans

2,300

1,300

Franz

1,900

2,900

5,500

5,600

General use

1,500

2,000

$7,000

$7,600

Overhead was charged to jobs on the basis of $0.80 per dollar of direct labor cost. The jacuzzis for customers Clark, Douglas, and Evans were completed and sold during May. Each jacuzzi was sold for $15,000 cash.

Instructions

1. Prepare a cost of goods manufactured schedule for May.
2. What was the net income earned in May?