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Jupiter Manufacturing began business on January 1. During its first year of oper

ID: 2525123 • Letter: J

Question

Jupiter Manufacturing began business on January 1. During its first year of operation, Jupiter worked on five industrial jobs and reported the following information at year-end:

Job 1

Job 2

Job 3

Job 4

Job 5

Direct Materials

$1,000

$7,500

$4,000

$3,500

$1800

Direct Labor

12,000

20,000

13,000

12,000

900

Allocated Mfg. Overhead

1,500

6,000

2,500

7,500

200

Job completed:

Jun 30

Sep 1

Oct 15

Nov 1

Not completed

Job sold:

Jul 10

Sep 12

Not sold

Not sold

N/A

Revenues:

$25,000

$39,000

N/A

N/A

N/A

What was the balance in Work-in-Process Inventory at year-end?

What was the balance in Finished Goods Inventory at year-end?

What was Cost of Goods Sold for the year?

Job 1

Job 2

Job 3

Job 4

Job 5

Direct Materials

$1,000

$7,500

$4,000

$3,500

$1800

Direct Labor

12,000

20,000

13,000

12,000

900

Allocated Mfg. Overhead

1,500

6,000

2,500

7,500

200

Job completed:

Jun 30

Sep 1

Oct 15

Nov 1

Not completed

Job sold:

Jul 10

Sep 12

Not sold

Not sold

N/A

Revenues:

$25,000

$39,000

N/A

N/A

N/A

Explanation / Answer

Calculate Total manufacturing cost :

Balance in work in process = 2900

Balance in finished goods inventory = (19500+23000) = 42500

Balance of cost of goods sold = (14500+33500) = 48000

Job 1 Job 2 Job 3 Job 4 Job 5 Direct material 1000 7500 4000 3500 1800 Direct labour 12000 20000 13000 12000 900 Allocated mfg overhead 1500 6000 2500 7500 200 Total manufacturing cost 14500 33500 19500 23000 2900