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

Quizplus · Accepted Answer

The cost of goods sold for May would include the costs of Jobs No. 124 and 125 since they were both completed and shipped to customers within the month. The goods in process inventory on May 31 would include the costs of any jobs not completed by the end of May. Since the question does not provide specific costs for each job, we cannot calculate exact figures, but the logic follows that completed and shipped jobs contribute to the cost of goods sold, while incomplete jobs contribute to goods in process inventory.

The Job Order Cost Sheets Used by Garza Company Revealed