Bluebird Manufacturing makes carrying cases for portable electronic devices. Its costing records yield the following information:

Requirements
1. Which type of costing system is Bluebird using? What piece of data did you base your answer on?
2. Use the dates in the table to identify the status of each job. Compute Bluebird€™s account balances at October 31 for Work in process inventory, Finished goods inventory, and Cost of goods sold. Compute, by job, account balances at November 30 for Work in process inventory, Finished goods inventory, and Cost of goods sold.
3. Prepare journal entries to record the transfer of completed units from Work in process to Finished goods for October and November.
4. Record the sale of Job 3 for $2,100.
5. What is the gross profit for Job 3? What other costs must this gross profitcover?

Transcribed Image Text:

Total Total Manufacturing Costs Added in November Cost of Job Job Date Started Finished Sold at October 31 No. 10/12 10/13 10/3 1,900 1,800 10/3 10/30 11/1 1,500 10/17 11/24 11/27 400 10/29 11/29 12/3 800 1,200 11/8 11/12 11/14 550 11/23 12/6 12/9 700