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

Requirements
1. Which type of costing system is Stratton 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 Stratton’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 jobs from Work- in- Process Inventory to Finished Goods Inventory for October and November.
4. Record the sale of Job 3 for $ 2,200.
5. What is the gross profit for Job3?

Transcribed Image Text:

Total Manufacturing Total Job Cost of Job Costs Added No. Started Finished Sold at October 31 n November Date 110/0310/12 10/1 1030 11/01 11/24 11/27 11/29 12/03 1,000 1,100 700 300 2 10/03 4 10/29 5 11/08 6 1/23 $1,400 1,500 650 500 12/06 12/09