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

Requirements
1. Compute Stewart Engine's cost of (a) Work in Process Inventory at June 30 and July 31,
(b) Finished Goods Inventory at June 30 and July 31, and (c) Cost of Goods Sold for June and July.
2. Make summary journal entries to record the transfer of completed jobs from Work in Process Inventory to Finished Goods Inventory for June and July.
3. Record the sale of Job 5 on account for $1,900.
4. Compute the gross profit for Job 5. What costs must the gross profit cover?

Transcribed Image Text:

Total Manufacturing Cost Added in July Total Cost Date of Job at June 30 Job No. Started 5/26 Finished Sold 6/9 6/13 $1,600 6/7 6/12 6/30 7/1 7/12 5/3 6/29 6/30 $1,500 7/3 7/1 7/14 $1,300 $ 900 $ 300 $ 500 7/8 7/23 8/6 8/9 $1,400 3.