The job order cost sheets used by Garza Company revealed the following:
$$\begin{array} { c c c }
\text { Job. No. } & \text { Bal. May 1 } & \text { May Production } \
&&\text { Costs } \
124 & \$ 1,700 & \$-- \
125 & 1,200 & 300 \
126 &-- & 900
\end{array}$$

Job No.125 was completed during May and Jobs No.124 and 125 were shipped to customers in May.What was the company's cost of goods sold for May and the goods in process inventory on May 31?

Question

The job order cost sheets used by Garza Company revealed the following:
$$\begin{array} { c c c } 
\text { Job. No. } & \text { Bal. May 1 } & \text { May Production }  \
&&\text { Costs } \
124 & \$ 1,700 & \$-- \
125 & 1,200 & 300 \
126 &-- & 900
\end{array}$$

Job No.125 was completed during May and Jobs No.124 and 125 were shipped to customers in May.What was the company's cost of goods sold for May and the goods in process inventory on May 31?

Quizplus · Accepted Answer

The cost of goods sold for May is the sum of the costs of Jobs No. 124 and 125, which were completed and shipped during May. The cost of goods sold is $1,700 + $300 = $2,000. The goods in process inventory on May 31 is the cost of Job No. 126, which was not completed during May. The cost of goods in process inventory is $900.

The Job Order Cost Sheets Used by Garza Company Revealed