Question

Perpetual Inventories The following summary data are from the job order cost sheets of Castle Company: Dates Total costs Assigned Total Production Job Started Finished Shipped at September 30 Costs Added in October 1 9/10 9/20 10/11 $9,000 2 9/17 9/29 10/22 6,600 3 9/25 10/11 10/27 3,500 $7,100 4 9/27 10/19 11/4 4,400 5,700 5 10/14 11/10 11/18 3,200 6 10/23 11/17 11/29 4,900 Using the above data,
compute:
(a) the finished goods inventory at October 1 and October 31,
(b) the work in process inventory at October 1 and October 31, and
(c) the cost of goods sold for October. Castle began operations with Job 1.
a. Finished goods inventory at October 1: ____________
Finished goods inventory at October 31: _____________
b. Work in process inventory at October 1: ___________
Work in process inventory at October 31: ____________
c. Cost of goods sold for October:__________

Answer 1

Answer and Explanation:

The computation of each point is shown below:-

a. The finished goods inventory at October 1 = $9,000 + $6,600

= $15,600

the finished goods inventory at October 31 = $4,400 + 5,700

= $10,100

b. the work in process inventory at October 1 = $3,500 + $4,400

= $7,900

the work in process inventory at October 31 = $3,200 + $4,900

= $8,100

c. the cost of goods sold for October.

Castle start operations with Job 1

= $9,000 + $6,600 + $3,500 + $7,100

= $26,200