Shannon Signage Co. produces customized billboards and neon signs. The company uses a job costing system...

 

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Shannon Signage Co. produces customized billboards and neon signs. The company uses a job costing system for costing its products. The following information is available for the month of March: Jobs in process at the beginning of the month and their value: # 123 $25,320 # 124 # 125 Costs added to each job this month: Materials $2,500 ? # 123 # 124 #125 # 126 $ 850 $10,500 $12,500 $ 500 March purchases Balance, March 31 The new job, #126, was started during the month. # 123 was completed and sold for $60,000. #124 was completed but not yet sold. The other two were still in process at the end of the month. Labour $2,952 $3,240 $3,348 $ 900 Unfortunately, the material records for job #124 were damaged, but total material records for the month were as follows: Balance, March 1 $4,250 25,300 5,700 Shannon tracks actual material and labour costs to each job and applies manufacturing overhead at the rate of $4 for each direct labour dollar. Required: 1. Calculate the amount of materials that must have been used in Job #124 during the month. (2 marks) 2. Calculate the total cost for each job. (8 marks) 3. What is the ending balance of WIP and Finished Goods inventories? (2 marks) 4. Show all of the journal entries that affected finished goods inventory during the month. (3 marks) Shannon Signage Co. produces customized billboards and neon signs. The company uses a job costing system for costing its products. The following information is available for the month of March: Jobs in process at the beginning of the month and their value: # 123 $25,320 # 124 # 125 Costs added to each job this month: Materials $2,500 ? # 123 # 124 #125 # 126 $ 850 $10,500 $12,500 $ 500 March purchases Balance, March 31 The new job, #126, was started during the month. # 123 was completed and sold for $60,000. #124 was completed but not yet sold. The other two were still in process at the end of the month. Labour $2,952 $3,240 $3,348 $ 900 Unfortunately, the material records for job #124 were damaged, but total material records for the month were as follows: Balance, March 1 $4,250 25,300 5,700 Shannon tracks actual material and labour costs to each job and applies manufacturing overhead at the rate of $4 for each direct labour dollar. Required: 1. Calculate the amount of materials that must have been used in Job #124 during the month. (2 marks) 2. Calculate the total cost for each job. (8 marks) 3. What is the ending balance of WIP and Finished Goods inventories? (2 marks) 4. Show all of the journal entries that affected finished goods inventory during the month. (3 marks)