Following are the selected account balances of Delray Mfg: Sales $1,200,000 Raw materials...
Question:
Following are the selected account balances of Delray Mfg:
| Sales | $1,200,000 |
| Raw materials inventory, Dec. 31,2014 | 40,000 |
| Work in process inventory, Dec.31,2014 | 55,600 |
| Finished goods inventory, Dec.31,2014 | 67,000 |
| Raw materials purchases | 173,900 |
| Direct labor | 244,000 |
| Factory computer supplies used | 18,700 |
| Indirect labor | 43,000 |
| Repairs-Factory equipment | 5,250 |
| Rent cost of factory building | 55,000 |
| Advertising expense | 82,000 |
| General and administrative expenses | 128,000 |
| Raw materials inventory, Dec.31,2015 | 47,600 |
| Work in process inventory, Dec.31,2015 | 43,500 |
| Finished goods inventory, Dec.31,2015 | 74,000 |
Prepare an income statement for Delray Mfg (a manufacturer). Assume that the cost of goods manufactured is $544,350.
Job order cost system
Job order costing is used to assign manufacturing costs to each and individual jobs. A company usually prepared job order cost sheet to calculate cost of foods manufactured and cost of goods sold.
Answer and Explanation: 1
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View this answer| Sales | 1,200,000 |
| Less:Cost of goods | -537,350.00 |
| Gross Profit | 662,650.00 |
| Less: Advertising expense | -82,000.00 |
| General and administrative... |
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Job Order Cost System for Service Companies
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Chapter 5 / Lesson 9
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The job order cost system is a way for service companies to assign costs since they do not sell physical products. Study the differences between manufacturing and service, and learn about the job order costing system through an example.
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