Jamison Company uses job-order costing and provided the following information on jobs worked on in the month of September: Total Cost Complete? Sold? Job 101 $4,500 Yes No Job 102 3,400 No No Job 103 1,200 No No Job 104 2,800 Yes No Job 105 3,900 Yes Yes Job 106 1,700 No No Job 107 6,000 Yes No Job 108 7,450 Yes Yes The beginning balance of Finished Goods was $4,000 for Job 100, which was not sold by the end of the month. Required: 1. Calculate the ending balance of Work in Process. 2. Calculate the ending balance of Finished Goods. 3. Calculate the ending balance of Cost of Goods Sold. 4. Suppose that Job 107 had been sold. How would that affect the ending inventory balances and cost of goods sold? Work in Process would______, Finished Goods would________, and Cost of Goods Sold would_________.
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.
Jamison Company uses
| Total Cost | Complete? | Sold? | |
| Job 101 | $4,500 | Yes | No |
| Job 102 | 3,400 | No | No |
| Job 103 | 1,200 | No | No |
| Job 104 | 2,800 | Yes | No |
| Job 105 | 3,900 | Yes | Yes |
| Job 106 | 1,700 | No | No |
| Job 107 | 6,000 | Yes | No |
| Job 108 | 7,450 | Yes | Yes |
The beginning balance of Finished Goods was $4,000 for Job 100, which was not sold by the end of the month.
Required:
1. Calculate the ending balance of Work in Process.
2. Calculate the ending balance of Finished Goods.
3. Calculate the ending balance of Cost of Goods Sold.
4. Suppose that Job 107 had been sold. How would that affect the ending inventory balances and cost of goods sold? Work in Process would______, Finished Goods would________, and Cost of Goods Sold would_________.
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