Figure 5 - 6 In the Mains Company, the following Job cards were totaled at the end of the month:
Job 243 $5,750
Job 244 $4,980
Job 245 $3,675
Job 246 $4,250
Job 247 $5,100
Job 248 $3,800
Jobs 243 and 244 were in Finished Goods Inventory at the beginning of the month.Jobs 245 and 246 were in Work-in-process at the beginning of the month.Jobs 247 and 248 were started during the month.At the end of the month, Jobs 243 and 247 were sent to customers; jobs 245, 247, and 248 were completed and sent to finished goods.
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Refer to Figure 5-6.What is the cost of goods sold for the month?

Question

Quizplus · Accepted Answer

The cost of goods sold can be calculated as follows:
Beginning finished goods inventory = cost of jobs 243 and 244 = $5,750 + $4,980 = $10,730
Beginning work-in-process inventory = cost of jobs 245 and 246 = $3,675 + $4,250 = $7,925
Cost of jobs started and completed during the month = cost of jobs 247, 248, and the completed portion of job 245 = $5,100 + $3,800 + $4,250 - $3,675 = $9,475
Ending finished goods inventory = cost of jobs 243 and 247 = $5,750 + $5,100 = $10,850
Cost of goods sold = Beginning finished goods inventory + Cost of jobs started and completed during the month - ending finished goods inventory
= $10,730 + $9,475 - $10,850 = $9,355
Therefore, the correct answer is (B) $10,850.

Figure 5 - 6 in the Mains Company, the Following