Chapter 17 Name 10-Minute Quiz B Section: The Information Be

Chapter 17name 10 Minute Quiz Bsectionthe Information Below

Chapter 17name 10 Minute Quiz Bsectionthe Information Below

CHAPTER 17 NAME #________ 10-MINUTE QUIZ B SECTION The information below is taken from the job cost sheets of O’Leary Company: Job Number Manufacturing Costs as of Oct. 31 Manufacturing Costs in November 350 $10, $8, $2,375 $5, $6,522 $10, $2,128 $5, $3,987 During November, job numbers 352 and 353 were completed and job numbers 350, 351 and 352 were delivered to customers. Jobs nos. 354 and 355 are still in process at November 30. From this information, compute the following: 1 What is the work in process inventory at October 31? $__________ 2 What is the finished goods inventory at October 31? $__________ 3 What is the cost of goods sold during November? $__________ 4 What is the work in process at November 30? $__________ 5 What is the finished goods inventory at November 30? $__________

Sample Paper For Above instruction

Introduction

Understanding the nuances of inventory management and cost accounting is vital for efficient operations in manufacturing companies. The given case involves calculating different inventory levels and cost of goods sold for O’Leary Company based on job cost sheets from October 31 and November, considering the progression of jobs through the manufacturing and sales process. This analysis helps in evaluating inventory status, cost control, and profitability.

Work in Process Inventory at October 31

The work in process (WIP) inventory at October 31 is calculated based on the beginning WIP, including the manufacturing costs incurred up to that point. The total job costs for October involve summing direct materials, direct labor, and manufacturing overhead for all jobs in progress. Although specific amounts for each job are not explicitly broken down for October, an estimate can be made considering November's costs and job statuses.

Finished Goods Inventory at October 31

The October finished goods inventory consists of completed jobs not yet sold. Identifying the jobs completed by November and subtracting those delivered gives the starting finished goods inventory, which can be derived by analyzing the movement of jobs and costs. This involves calculating the costs associated with jobs completed before November 1 and still in inventory.

Cost of Goods Sold during November

The cost of goods sold (COGS) in November includes the costs of jobs delivered during the month. Since jobs 350, 351, and 352 were delivered in November, their associated costs from the cost sheets contribute to COGS. Summing these costs, which include both direct and allocated manufacturing overhead, provides the total COGS for November.

Work in Process at November 30

The WIP at November 30 encompasses jobs still in process, namely jobs 354 and 355. Their costs can be calculated based on their incurred manufacturing costs up to that date, which were not completed or delivered. Considering the costs accumulated for these jobs yields the ending WIP inventory at month-end.

Finished Goods Inventory at November 30

The finished goods inventory on November 30 consists of completed jobs not yet sold or delivered—specifically jobs 354 and 355. Their costs are derived from the manufacturing costs accumulated up to that date. The inventory value reflects these remaining completed but unsold jobs.

Conclusion

Effective management of work in process and finished goods inventories based on precise cost calculations is crucial in manufacturing. Proper allocation and understanding of job costs facilitate accurate financial reporting and better strategic decision-making.

References

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