Question

Calculate the required questions from the information that has been provided.

Answer 1

Question 1:

 

Classic Manufacturing uses Job Order Costing System.

We know this because the cost records show costs being accumulated for each Job.

 

Question 2:

Date	WIP Inventory		FinishedGood Inventory		Cost of Goods Sold
	Job	Cost	Job	Cost	Job	Cost
Sept 30	3	$300	2	$1,600	1	$1,100
	4	$400
	Total	$700	Total	$1,600	Total	$1,100
Oct 31	6	$800	4	$1,400	2	$1,600
					3	$1,700
					5	$300
	Total	$800	Total	$1,400	Total	$3,600

Question 3:

Date	Accounts Title	Amount (Dr)	Amount (Cr)
30 Sept	Finished Goods Inventory (Job 1 & 2)	$2,700
	To WIP Inventory		$2,700
	( 1600 + 1100 )
31 Oct	Finished Goods Inventory A/c Dr (Job 3,4 and 5)	$3,400
	To WIP Inventory		$3,400
	(1700+1400+300)

Question 4:

Date	Accounts Title	Amount (Dr)	Amount (Cr)
1 Jan	Accounts Receivable A/c Dr	$2,000
	To Sales Revenue		$2,000
	Cost of Goods Sold A/c Dr	$1,700
	To Finished Goods Inventory		$1,700

Question 5:

 

Gross Profit = $ 2,000 - $ 1,700 = $ 300

1: Job Order Costing System
2: Statement has been prepared
3: Journal Entries have been prepared
4: Journal Entries have been prepared
5: $300