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What was gross profit for January? (Show supporting work.)

Example Manufacturing Company uses a job order
costing system. The following information summarizes its operations related to
production for January, its first month of operations.

A. Purchased production materials on account,
\$82,000.

B. Production materials of \$79,600 were
requisitioned to the factory for the five jobs started in January and for
general factory use as follows:

 Job Materials Job No. 1001 \$10,300 Job No. 1002 13,670 Job No. 1003 11,200 Job No. 1004 18,800 Job No. 1005 21,900 General factory use 3,730 \$79,600

C. Factory labor costs of \$65,400 were
incurred. The employee time tickets provided the following:

 Job Factory Labor Job No. 1001 \$ 8,300 Job No. 1002 10,250 Job No. 1003 9,200 Job No. 1004 15,300 Job No. 1005 17,400 General factory use 4,950 \$65,400

D. Factory overhead is allocated to jobs at a rate
of \$40 per machine hour. Machine hours used were:

 Job Machine Hours Job No. 1001 54 Job No. 1002 72 Job No. 1003 58 Job No. 1004 90 Job No. 1005 96 370

E. Depreciation on the factory machinery and
equipment was \$6,500.

F. Factory overhead costs incurred on account were
\$8,300.

G. Jobs 1001, 1002 and 1004 were completed.

H. Jobs 1001 and 1002 were shipped and the customers
were billed \$24,000 for job 1001 and \$31,000 for job 1002.

REQUIRED:

Part 1: Prepare a schedule summarizing manufacturing
costs by job incurred in January. Use the following columns and provide
column totals.

Job Direct
Materials Direct
Labor
Total

Part 2: What are the January 31 balances for
jobs in that balance.

Work in Process
Inventory

Finished Goods
Inventory

Cost of Goods
Sold

Part 3: What was cost of goods manufactured
for January? (Show supporting work.)

Part 4: What was gross profit for
January? (Show supporting work.)

Price: £ 45

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