Okinawa Company uses job-order costing. They worked on three jobs in July. Data are as follows:
|Direct materials||$10 450||$12 300||$16 150|
|Direct labour||$16 000||$12 200||$24 000|
|Machine hours||500||300||1 000|
|Balance, 1 July||$21 310||$6 250||$0|
Overhead is applied to jobs at the rate of $16 per machine hour. By 31 July, Jobs 2106 and 2108 were completed. Jobs 2102 and 2106 were sold. Job 2107 remained n process. On 1 July, the balance in Finished Goods was $49 000 (consisting of Job 2102 for $25 600 and Job 2104 for $23 400).
Okinawa prices its jobs at cost plus 30%. During July, variable marketing expenses were 5% of sales and fixed marketing expenses were $2 000; administrative expenses were $4 800.
(a) Prepare job-order cost sheets for all jobs in process during July, showing all costs through 31 July.
(b) Calculate the balance in Work in Process on 31 July. (1 mark)
(c) Calculate the balance in Finished Goods on 31 July. (2 marks)
(d) Calculate Cost of Goods Sold for July. (2 marks)
(e) Calculate operating income for Okinawa Company for the month of July. (7 mark)
Click on Buy Solution and make payment. All prices shown above are in USD. Payment supported in all currencies. Price shown above includes the solution of all questions mentioned on this page. Please note that our prices are fixed (do not bargain).
After making payment, solution is available instantly.Solution is available either in Word or Excel format unless otherwise specified.
If your question is slightly different from the above question, please contact us at firstname.lastname@example.org with your version of question.