Morrow Corporation had only one job in process during May-Job X322-and had no fi

Question

Morrow Corporation had only one job in process during May-Job X322-and had no finished goods inventory on May 1. Job X32Z was started in April and finished during May. Data concerning that job appear below $8,000 Beginning balance Charged to the job during May Direct materials Direct labor Manufacturing overhead applied S12,500 S4,900 $ 7,000 270 Units completed Units in process at the end of May Units sold during May 125 In May, overhead was overapplied by $470. The company adjusts its cost of goods sold every month for the amount of the overhead that was underapplied or overapplied Required: 1. Using the direct method, what is the cost of goods sold for May? 2. What is the total value of the finished goods inventory at the end of May? cost of ending finished goods 3. What is the total value of the work in process inventory at the end of May? work in process

Explanation / Answer

1. Cost of goods sold: $14530

2. Finished goods inventory at end of May: $17400

3. Ending work in process inventory: $0

Since there are no units in process at the end of the month.

Job X32Z Beginning balance $ 8000 Direct materials 12500 Direct labor 4900 Factory overhead applied 7000 Total manufacturing costs $ 32400 Units completed 270 Unit product cost $ 120 Units sold 125 Unadjusted cost of goods sold 15000 Less overapplied overhead 470 Cost of goods sold $ 14530

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