Chapter 1 - Accounting 208 - Example 3 Apex Corporation began operations on July 1st. The company used normal costing, but in this example the actual overhead incurred for the year is equal to the estimated overhead cost applied to each job (This will make more sense when we cover Chapter 3). During the month of July, the company only worked on two jobs: Job1 and Job 2. The product costs charged to these jobs during July are as follows: Direct Materials Direct Labor Applied Overhead Job 1 Job 2 $250 $400 $150 $300 $200 $350 Only Job 2 was finished during July. Job 2 consisted of 10 units. During July, 6 of these units were sold at $150 per unit. The company purchased $820 of direct materials during July. A salesperson is paid $190 each month to work for the company. Assume that this is the only period expense (also called non-manufacturing expense) or operating expense that the company has. 1. Compute the following: BE SURE YOU ORGANIZE YOUR WORK INTO JOBS. THAT IS THE SECRET! a) Ending Materials Inventory b) Ending Work In Process ("WIP") Inventory c) Ending Finished Goods Inventory d) COGM for the month ending 7/31 e) COGS for the month ending 7/31 2. How would you compile the Income Statement for July? Include a Schedule of COGM