Tierney Company begins operations on April 1. Information from job cost sheets s
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Tierney 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 $7,200 $5,700 May 11 5,700 4,300 $3,600 June 12 1,600 April 13 6,000 5,500 June 14 6,100 3,800 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.
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Exercise 16-10 Tierney Company begins operations on April 1. Information from job cost sheets shows the following Manufacturing Costs Assigned Job Numbe Month Completed April May June $7,200 5,700 1,600 May $3,600 June April 5,500 June 10 $5,700 4,300 12 13 14 6,000 6,100 3,800 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 Your answer is correct. What is the balance in Work in Process Inventory at the end of each month? April 30 May 31 June 30 Work in Process Inventor 12900 22100 9900Explanation / Answer
Calculation of Gross profit:
In May : Job sold 12 costing $1600
Gross profit = 1600*25% = $400
In June: Job completed in May amounting $12900
Gross Profit = 12900*25% = 3225
In July : Jobs completed in June amounting to $25100
Gross Profit = 25100*25% = 6275
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