Question

Coronado Company begins operations on April 1. Information from job cost sheets shows the following. Manufacturing Costs Assigned Job Number April May June Month Completed 10 $6,200 $4,900 May 11 5,000 4,700 $3,100 June 12 1,500 April 13 5,600 4,600 June 14 7,000 4,100 Not complete Job 12 was completed in April. Job 10 was completed in May. Jobs 11 and 13 were completed in June. Each job was sold for 25% above its cost in the month following completion.

1. What is the balance in Work in Process Inventory at the end of each month?2. What is the balance in Finished Goods Inventory at the end of each month?3. What is the gross profit for May, June, and July?

Answer 1

Answer:1) Balance in work in Process Inventory for April, May, June

= $11,200, $22,300, $11,`100

2) Balance of finished goods for April, May, June= $1,500, $11,100, $23,000

3)Gross profit for May , June, July $375,$2,775 $5,750

Step-by-step explanation:

Given

Manufacturing Costs Assigned

Job Number April May June Month Completed

10 $6,200 $4,900 May

11 5,000 4,700 $3,100 June

12 1,500 April

13 5,600 4,600 June

14 7,000 4,100 Not complete

Solution

1) Balance in work in Process Inventory

Job April May June

10 $6,200

11 5,000 5,000+ 4700(9,700)

12 - - -

13 -- 5,600 --

14 --- $7000 $7000 + 4,100 (11,100)

Total $11,200 $22,300 $11,`100

2) Balance of finished goods

Job April May June

10 --- $6,200+ $4,900(11.100)

11 ---- ------ 5,000+4,700 + $3,100(12,800)

12 $1,500 - -

13 -- ---- 5,600+4,600 (10,200)

14 Not complete Not complete

Total $1,500 $11,100 $23,000

3) Gross profit for May , June, July.

May = Finished goods from previous month x mark up percent

$1,500 x 25%=$375

June = Finished goods from previous month x mark up percent

$11,100 x 25%=$2,775

July= Finished goods from previous month x mark up percent

$23,000 x 25%=$5,750