Garner Company begins operations on July 1 2017. Information from job cost sheets shows the following: $\quad$ $\quad$ $\quad$ $\quad$ $\text { Manufacturing Costs Assigned }$
$100$12,000$8,80010110,8009,700$12,0001025,00010311,8006,0001045,8007,000\begin{array}{rrrr}\text { JobNo. }& \text { July }& \text { August } & \text { September }\\100 & \$ 12,000 & \$ 8,800 & \\101 & 10,800 & 9,700 & \$ 12,000 \\102 & 5,000 & & \\103 & & 11,800 & 6,000 \\104 & & 5,800 & 7,000\end{array}$ Job 102 was completed in July. Job 100 was completed in August and Jobs 101 and 103 were completed in September. Each job was sold for 60% above its cost in the month following completion.
Instructions
(a) Compute the balance in Work in Process Inventory at the end of July.
(b) Compute the balance in Finished Goods Inventory at the end of September.
(c) Compute the gross profit for August.

Question

Garner Company begins operations on July 1 2017. Information from job cost sheets shows the following:

\quad

\quad

\quad

\quad

\text { Manufacturing Costs Assigned }

100$12,000$8,80010110,8009,700$12,0001025,00010311,8006,0001045,8007,000\begin{array}{rrrr}\text { JobNo. }& \text { July }& \text { August } & \text { September }\\100 & \$ 12,000 & \$ 8,800 & \\101 & 10,800 & 9,700 & \$ 12,000 \\102 & 5,000 & & \\103 & & 11,800 & 6,000 \\104 & & 5,800 & 7,000\end{array}

Job 102 was completed in July. Job 100 was completed in August and Jobs 101 and 103 were completed in September. Each job was sold for 60% above its cost in the month following completion.
Instructions
(a) Compute the balance in Work in Process Inventory at the end of July.
(b) Compute the balance in Finished Goods Inventory at the end of September.
(c) Compute the gross profit for August.

Zybrea Knight · Accepted Answer

Final Answer :  (a) Work in Process I nventory  July  Job  100 $ 12 , 000  Job  101 10 , 800 ‾  Balance, July  31 $ 22 , 800 \begin{array}{cc}	ext { July} & 	ext { Job } 100  &  \$ 12,000 \ & 	ext { Job } 101  &  \underline{10,800}\	ext { Balance, July } 31 & & \$22,800\end{array}  July  Balance, July  31 ​  Job  100  Job  101 ​ $12 , 000 10 , 800 ​ $22 , 800 ​ (b) Finished Goods Inventory  Job  101 $ 32 , 500  Job  103 17 , 800 ‾  Balance, Sept.30  30 $ 50 , 300 \begin{array}{cc}	ext { Job } 101  &  \$ 32,500\	ext { Job } 103 &  \underline{17,800}\	ext { Balance, Sept.30 } 30 & \$50,300\end{array}  Job  101  Job  103  Balance, Sept.30  30 ​ $32 , 500 17 , 800 ​ $50 , 300 ​ (c) Gross Profit  Month  Job Number   Sales  C O G S  Gross Profit   August  102 $ 8 , 000 $ 5 , 000 $ 3 , 000 \begin{array}{ccccc}	ext { Month}  &  	ext { Job Number }  &  	ext { Sales }  &  \mathrm{COGS}  &  	ext { Gross Profit } \\hline	ext { August } & 102 & \$8,000 & \$5,000 & \$3,000\end{array}  Month  August  ​  Job Number  102 ​  Sales  $8 , 000 ​ COGS $5 , 000 ​  Gross Profit  $3 , 000 ​ ​

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