Gibbs Engine reconditions engines. Its job cost records yield the following information. Gibbs Engine uses a perpetual inventory system.

Requirements
1. Compute Gibbs Engine€™s cost of ( a) Work in Process Inventory at April 30 and May 31, ( b) Finished Goods Inventory at April 30 and May 31, and ( c) Cost of Goods Sold for April and May.
2. Make summary journal entries to record the transfer of completed jobs from Work in Process Inventory to Finished Goods Inventory for March and April.
3. Record the sale of Job 5 on account for $ 2,200.
4. Compute the gross profit for Job 5. What costs must the gross profitcover?

Transcribed Image Text:

Total Manufacturing Cost Added in May Total Cost of Job at April 30 1,900 $1,500 $1,000 Date Job No. Started Finished Sold 3/26 4/12 4/13 5/12 6/6 $ 400 800 $1,100 5/8 5/14