Problem for Job Order Costing

Tiny Homes uses a job costing system to account for the individual prefabricated homes of January 1, its accounting records showed inventories as follows the individual prefabricated homes it builds. As Materials and supplies Work in process (Jobs 422 and 423) Finished goods (Job 421) $120,000 180,000 175,000 The work in process in ventory consisted of two jobs: Job# 422 423 Direct Materials $36,000 Direct Labor Manufacturing Overh $40,000 $20,000 $96,000 $36,000 $180,000 $76,000 $68,000 Other data: 1. Materials purchased on account, $400,000. 2. Direct materials used: Job 422, $60,000; Job 423, S120,000: Job 424, S180,000. Indirect materials used, $10,000. 3. Direct labor costs: Job 422, $100,000; Job 423, S200,000; Job 424, s80,000. Indirect labor costs, $80,000. 4. Overhead assigned to jobs at $200 per machine hour. Job 422 used 250 machine hours, Job 423 used 500 machine hours, and Job 424 used 150 machine hours. 5. Jobs 422 and 423 were completed and transferred to Finished Goods Inventory 6. Jobs 421 and 422 were sold on account for $1,350,000 total. 7. Manufacturing overhead costs incurred, other than indirect materials and indirect labor, were depreciation, $75,000, and electricity and other miscellaneous, $45,000. 8. Selling, general, and administrative expenses totaled S 195,000. REQUIRED a. Compute the ending balances of Materials, Work in Process, and Finished Goods at the end of January Materials Work in Process Finished Goods 160, ooo 1,31 b. Compute the product costs associated with Jobs 422, 423, and 424 at the end of January? 422 423 424 c. Complete the income statement for the month of January Sales -Cost of goods sold (adjusted) Gross profit margin Selling, general and administrative expenses Net Income