E37A Perpetual Inventories The followving summary data are f

E.3-7A. Perpetual Inventories The followving summary data are from the job order cost shof Company: Dates Total Costs Assigned at April 30 Total Production Costs Added in May Job Started Finished Shipped 4/10 4/18 4/24 4/28 5/15 5/22 4/20 4/30 5/10 5/20 6/10 6/18 5/9 5/20 5/25 6/3 6/20 6/28 $7,300 5,400 2,900 3,600 2 $5,700 4,800 2,600 3,800 4 Using the above data, compute (a) the finished goods inventory at May 1 and May 31., (b) the in process inventory at May 1 and May 31, and (c) the cost of goods sold for May. operations with Job 1 . beg E3-8A, Finished Goods and (

Solution

Dates Cost assigned Total production Status as at May 1 Status as at May 31 Job Started Finished Shipped as at April 30 costs added in May Work in Finished Cost of Work in Finished Cost of process goods goods sold process goods goods sold 1 4/10 4/20 5/9 7,300 7,300 7,300 2 4/18 4/30 5/20 5,400 5,400 5,400 3 4/24 5/10 5/25 2,900 5,700 2,900 8,600 4 4/28 5/20 6/3 3,600 4,800 3,600 8,400 5 5/15 6/10 6/20 2,600 2,600 6 5/22 6/18 6/28 3,800 3,800 T o t a l 19,200 16,900 6,500 12,700 0 6,400 8,400 21,300 Job 1 : Started and finished in April and shipped in May. Therefore cost will be under Finished goods as at May 1 and will be under cost of goods sold as at May 31. Job 2 : Started and finished in April and shipped in May. Therefore cost will be under Finished goods as at May 1 and will be under cost of goods sold as at May 31. Job 3: Started in April, finished and shipped in May. Therefore cost incured in April will be under Work in process as at May 1 and the total cost( April+May) will be under cost of goods sold as at May 31. Job 4: Started in April, finished in May and shipped in June. Therefore cost incurred in April will be under Work in process as at May 1 and the total cost( April+May) will be under finished goods as at May 31. Job 5 : Started in May, finished and shipped in June. Therefore cost incurred in May will be under Work in process as at May 31 Job 6 : Started in May, finished and shipped in June. Therefore cost incurred in May will be under Work in process as at May 31