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 | $5,200 | $4,400 | May | |
| 11 | 4,100 | 3,900 | $2,000 | June |
| 12 | 1,200 | April | ||
| 13 | 4,700 | 4,500 | June | |
| 14 | 5,900 | 3,600 | 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.
Instructions
- What is the balance in Work in Process Inventory at the end of each month?
- What is the balance in Finished Goods Inventory at the end of each month?
- What is the gross profit for May, June, and July?
Solution
Sales = Cost of Goods sold x 125%