July production generated the following activity in Ciano Piano€™s work in process inventory. Production was completed in July, but is not recorded yet; it consists of Jobs C-55 and G-72, with total costs of $40,600 and $36,900, respectively.

Requirements
1. Compute the balance of work in process inventory at July 31.
2. Prepare the journal entry for the production completed in July.
3. Prepare the journal entry to record the sale (on credit) of Job G-72 for $43,900. Assume a perpetual inventory system.
4. What is the gross profit of Job G-72? What other costs must this gross profit cover?

Transcribed Image Text:

Work in Process Inventory Jul 1 Bal Direct materials used 28,600 Direct labour assigned 15,750 to jobs Manufacturing 32,150 overhead allocated to jobs 12,250