(Job Costing) Fisher Ltd. manufactures custom furniture and uses a job costing system. On January 1, 2012, there were no balances in work-in-process or finished goods inventories. The following events occurred in January 2012:
- The company began two jobs: Job A101 (comprising 40 tables) and Job B202 (comprising 60 chairs).
- 400 square metres of timber were purchased at a total cost of $5,800.
- 80 litres of glue were purchased at a cost of $6 per litre.
- The following materials were issued during the month:
Issue 1: Job A101—200 square metres of timber
Issue 2: Job B202—150 square metres of timber
Issue 3: 20 litres of glue to be used on each job
- The following number of direct labour hours were spent on the two jobs:
Job A101: 200 direct labour hours
Job B202: 100 direct labour hour
Actual direct labour cost per hour was $30.
- Overhead should be charged to each job on the basis of $25 per direct labour hour.
- Job A101 was completed and 30 tables from the job were sold for a total price of $15,000. Job B202 was unfinished at month-end.
- Calculate the inventory value at month-end of
- Raw materials
- Work in process
- Finished goods
- Calculate the cost of goods sold and gross profit for the month.