The job order cost sheets used by Greene Company revealed the following: $\begin{array} { c c c }
\text { Job. No. } & \text { Bal., May 1 } & \text { May Production Costs } \
134 & \$ 1,700 & \$0 \
135 & 1,200 & 300 \
136 &0 &900 \
& &
\end{array}$
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?

Question

The job order cost sheets used by Greene Company revealed the following: $\begin{array} { c c c } 
\text { Job. No. } & \text { Bal., May 1 } & \text { May Production Costs } \
134 & \$ 1,700 & \$0 \
135 & 1,200 & 300 \
136 &0 &900 \
& &
\end{array}$
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?

Quizplus · Accepted Answer

To calculate the cost of goods sold, we need to add up the total cost of completed jobs that were shipped to customers in May. From the information given, we know that Jobs No. 134 and 135 were shipped in May, so we need to look at their cost on the job order cost sheet.

Cost of Job No. 134 = $1,200

Cost of Job No. 135 = $900

Total cost of completed jobs = $1,200 + $900 = $2,100

Therefore, the cost of goods sold for May was $2,100.

To calculate the Work in Process inventory on May 31, we need to look at the cost of the job that was still in process at the end of May, which is Job No. 136.

Cost of Job No. 136 = $900

Therefore, the Work in Process inventory on May 31 was $900.

Overall, the company's cost of goods sold for May was $2,100 and the Work in Process inventory on May 31 was $900. The correct answer is (C).

The Job Order Cost Sheets Used by Greene Company Revealed