Chirico Manufacturing Company uses job costing system. The following job cost re

Question

Chirico Manufacturing Company uses job costing system. The following job cost records were provided for January, the company’s first month of operations: Job 1 Job 2 Job 3 Job 4 Job 5 Direct materials used $100 $400 $300 $200 $400 Direct labor cost 300 600 200 500 100 Allocated overhead 300 600 200 500 100 Total $700 $1,600 $700 $1,200 $600 Date started 01/02 01/10 01/20 01/25 01/22 Date completed 01/18 01/20 01/30 02/02 02/10 Date delivered to customer 01/20 01/25 02/02 02/05 02/15 There was no inventory of any kind at the beginning of January. 3. The amount of cost of goods manufactured for January is A) $2,300. B) $1,800. C) $4,800. D) $3,000. 4. The amount of cost of goods sold for January is A) $4,800. B) $2,300. C) $3,000. D) $1,800. 5. The amount of ending work in process as of January 31st is A) $3,000. B) $1,800. C) $2,300. D) $4,800.

Explanation / Answer

Jobs 1 2 3 4 5 Direct materials used $100.00 $400.00 $300.00 $200.00 $400.00 Direct labor cost $300.00 $600.00 $200.00 $500.00 $100.00 Allocated Overhead $300.00 $600.00 $200.00 $500.00 $100.00 Total Cost $700.00 $1,600.00 $700.00 $1,200.00 $600.00 Date Completed 01/18 01/20 01/30 02/02 02/10 Date delivered to customer 01/20 01/25 02/02 02/05 02/15 Job Status COGM COGM COGM Job Status COGS COGS Job Status WIP WIP Cost of goods manufactured = Job 1 + Job 2 + Job 3 = $700+$1600+$700 = $3000 The answer is Option D. Cost of goods sold = Job 1 + Job 2 = $700 + $1600 = $2300 The answer is Option B. Ending work in process = Job 4 + Job 5 = $1200 + $600 = $1800 The answer is Option B.

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