Morrow Corporation had only one job in process during May-Job X32Z-and had no finished goods inventory on May 1. Job X32Z was started in April and finished during May. Data concerning that job appear below: Job X32Z Beginning balance Charged to the job during May Direct materials Direct labor Manufacturing overhead applied Units completed Units in process at the end of May Units sold during May $ $ $ $ 5,000 8,000 2,000 4,000 100 Required: 1. Using the direct method, what is the cost of goods sold for May? 2. What is the total value of the finished goods inventory at the end of May? 3. What is the total value of the work in process inventory at the end of May? 0 40 In May, overhead was overapplied by $300. The company adjusts its cost of goods sold every month for the amount of the overhead that was underapplied or overapplied.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Morrow Corporation had only one job in process during May-Job X32Z-and had no finished goods inventory on May 1. Job X32Z
was started in April and finished during May. Data concerning that job appear below:
Job X32Z
Beginning balance
Charged to the job during May
Direct materials
Direct labor
Manufacturing overhead applied
Units completed
Units in process at the end of May
Units sold during May
$
$
$
$
5,000
8,000
2,000
4,000
100
Required:
1. Using the direct method, what is the cost of goods sold for May?
2. What is the total value of the finished goods inventory at the end of May?
3. What is the total value of the work in process inventory at the end of May?
0
40
In May, overhead was overapplied by $300. The company adjusts its cost of goods sold every month for the amount of the overhead
that was underapplied or overapplied.
Transcribed Image Text:Morrow Corporation had only one job in process during May-Job X32Z-and had no finished goods inventory on May 1. Job X32Z was started in April and finished during May. Data concerning that job appear below: Job X32Z Beginning balance Charged to the job during May Direct materials Direct labor Manufacturing overhead applied Units completed Units in process at the end of May Units sold during May $ $ $ $ 5,000 8,000 2,000 4,000 100 Required: 1. Using the direct method, what is the cost of goods sold for May? 2. What is the total value of the finished goods inventory at the end of May? 3. What is the total value of the work in process inventory at the end of May? 0 40 In May, overhead was overapplied by $300. The company adjusts its cost of goods sold every month for the amount of the overhead that was underapplied or overapplied.
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