Question

JJ&LL Manufacturing began business on January 1. During its month of operation, JJ&LL worked on four industrial jobs and reported the following information at month-end:

	Job 1	Job 2	Job 3	Job 4
Direct Materials	$1,000	$4,000	$3,500	$1,800
Direct Labor	12,000	13,000	12,000	900
Applied Factory Overhead	1,500	2,500	7,500	200
Job completed:	Jan 15	Jan 18	Jan 25	Not completed
Job sold:	Jan 23	Not sold	Not sold	N/A
Revenues:	$25,000	N/A	N/A	N/A

What is the balance in Finished Goods at the end of the period?

Answer 1

Finished Goods at the end of the period= $42,500

Working

	Job 1	Job 2	Job 3	Job 4	Total
Direct Materials	$        1,000	$       4,000	$           3,500	$          1,800
Direct Labor	$      12,000	$     13,000	$          12,000	$            900
Applied Factory Overhead	$        1,500	$       2,500	$           7,500	$            200
Total cost of work in process	$      14,500	$     19,500	$          23,000	$          2,900
Less: Ending work in process (incomplete job)				$         (2,900)
Less: Cost of goods sold (jobs sold)	$     (14,500)
Ending finished goods inventory	$             -	$     19,500	$          23,000	$               -	$ 42,500