3. What is the cost of goods sold for March?
4. what if the March l balance of Finished Goods was $4,560 (consisting of Job 61)? What is the ending balance of Finished Goods in March?
Solution:
l. Since Jobs 63 and 64 are unfinished by March their total cost must be the balance in Work in Process.
March 31 Work in Process $7.384 $5.560 $12,944
2. Since no jobs were completed but not sold, nothing is added to Finished Goods during March. Since the beginning balance in Finished Goods was zero, the ending balance must also be zero.
3. Cost of goods sold = Job 62 = $9,520
4. If the beginning balance of Finished Goods was s4,560. any newly completed jobs were sold by the end of March, and Job 61 was not sold during March, the ending balance would remain at $4,560.