Determine total value of the finished goods inventory


Response to the following problem:

Kuvomi Corporation worked on four jobs during October: Job F346, Job F347, Job F348, and Job F349. At the end of October, the job cost sheets for these jobs contained the following data:

                                       Job F346           Job F347          Job F348            Job F349

Beginning balance               $ 1,090             $ 590                 $ 0                      $ 0

Charged to the jobs during October:

Direct materials                 $ 2,840               $ 4,070            $ 1,550              $ 3,720

Direct labor                       $ 1,170              $ 890               $ 590                  $ 470

Manufacturing overhead applied $ 4,710         $ 1,840            $ 2,858                $ 500

Units completed                   218                       0                  102                    0

Units in process at the end of October, 0            317                    0                  255

Units sold during October        151                     0                      64                    0

Jobs F346 and F348 were completed during October. The other two jobs had not yet been completed at the end of October. There was no finished goods inventory on October 1. In October, overhead was underapplied by $1,340. The company adjusts its cost of goods sold every month for the amount of the underapplied or overapplied overhead.

Requirement 1: Using the direct method, what is the cost of goods sold for October?

Requirement 2: What is the total value of the finished goods inventory at the end of October?

Requirement 3: What is the total value of the work in process inventory at the end of October?

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Cost Accounting: Determine total value of the finished goods inventory
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