Question

The job order cost sheets used by Greene Company revealed the following:

Job No. Bal., May 1 May Production Costs
134 $1,700 $0
135 1,200 300
136 0 900
Job No. 135 was completed during May and Jobs No. 134 and 135 were shipped to customers in May. What was the company's cost of goods sold for May and the Work in Process inventory on May 31?

A. 3200 ; 900
B. 2900 ; 1200
C. 1200 ; 2900
D. 1700 ; 1200
E. 4100 ; 0

Answer 1

Answer:

A. 3200 ; 900

Explanation:

The computation is shown below:

For Cost of goods sold

= Job no 134 + Job no 135

= $1,700 + $1,200 + $300

= $1,700 + $1,500

= $3,200

And, the work in process inventory is

= Job no 136

= $900

Since the job no 136 is not completed and the same is to be transferred to the work in process account

And, the job no 134 and the job no 135 reflected in the cost of goods sold