A manufacturer began operations on April 1 and reports the information below. All jobs are sold for 20% above cost. Job number 12345 Manufacturing costs May $2,230 April $ 910 760 1,310 585 1,950 2,740 510 3,710 Job Status at May 31 Completed and sold during May In process Completed but not sold Completed and sold during May In process 1. Compute the May 31 balance in (a) Work in Process Inventory and (b) Finished Goods Inventory. 2. Compute gross profit for May Complete this question by entering your answers in the tabs below.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![A manufacturer began operations on April 1 and reports the information below. All jobs
are sold for 20% above cost.
Job number
12345
2
Manufacturing costs
May
$2,230
1,950
2,748
Completed but not sold
510 Completed and sold during May
3,710 In process
April
$ 910
760
1,310
585
Sales
Cost of goods sold
Gross profit
1. Compute the May 31 balance in (a) Work in Process Inventory and (b) Finished
Goods Inventory.
2. Compute gross profit for May.
Complete this question by entering your answers in the tabs below.
Required 1A Required 18 Required 2
Compute gross profit for May.
Job Status at May 31
Completed and sold during May
In process
$
Total
< Required 18
Required 2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F59563d2c-8cab-4a25-b7ff-e6bc8db07dbf%2Fb8da577e-4fb4-4641-9e55-77165c5bcfec%2Fzug7aal_processed.png&w=3840&q=75)
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