Morrow Corporation had only one job in process during May-Job X32Z-and had no finished goods inventory on May 1. Job X32Z was started in April and finished during May. Data concerning that job appear below:
___________________________________ Job X32Z
Beginning balance ................................ $5,000
Charged to the job during May .........................
Direct materials .................................. $8,000
Direct labor ....................................... $2,000
Manufacturing overhead applied .............. $4,000
Units completed .................................... 100
Units in process at the end of May .................. 0
Units sold during May ............................... 40
In May, overhead was over applied by $300. The company adjusts its cost of goods sold every month for the amount of the overhead that was under applied or over applied.
Required:
1. Using the direct method, what is the cost of goods sold for May?
2. What is the total value of the finished goods inventory at the end of May?