Expedition Company job order costing: Using the May data for Jobs A10, B20, C30, D40, and E50 (beginning balances; direct materials, direct labor, and overhead applied; units completed, in process, and sold), what are (1) cost of goods sold for May, (2) finished goods inventory at May 31, and (3) work in process inventory at May 31?

What you are trying to compute

In job order costing, each job has its own cost sheet. You first total the cost of each job (beginning balance plus May costs). Then:

• Completed jobs move from Work in Process (WIP) to Finished Goods (FG).
• Sold units move from Finished Goods to Cost of Goods Sold (COGS).
• Incomplete jobs stay in WIP.

1) Compute total cost for each job

Add beginning balance + direct materials + direct labor + overhead applied.

• Job A10: $133 + 170 + 150 + 177 = \$630$
• Job B20: $150 + 150 + 160 + 190 = \$650$
• Job C30: $190 + 200 + 110 + 110 = \$610$
• Job D40: $150 + 140 + 180 + 180 = \$650$
• Job E50: $215 + 280 + 210 + 225 = \$930$

2) Unit product cost for completed jobs (round to 2 decimals)

Only A10, C30, and E50 were completed.

• A10: $\$630 / 180 = \$3.50$ per unit
• C30: $\$610 / 80 = \$7.625 \approx \$7.63$ per unit
• E50: $\$930 / 210 = \$4.42857 \approx \$4.43$ per unit

3) Cost of goods sold for May

COGS includes only the units sold:

• C30 sold: $80 \times \$7.63 = \$610.40$
• E50 sold: $160 \times \$4.43 = \$708.80$

So, $$\text{COGS} = 610.40 + 708.80 = 1319.20 \approx \$1{,}319$$

4) Finished goods inventory at May 31

Finished goods are completed but not sold.

• A10: completed 180, sold 0, so ending FG units = 180
• Value: $180 \times \$3.50 = \$630.00$
• E50: completed 210, sold 160, so ending FG units = $210 - 160 = 50$
• Value: $50 \times \$4.43 = \$221.50$
• C30: completed 80, sold 80, so ending FG units = 0

Total ending FG: $%%DOLLAR%%630.00 + 221.50 = 851.50 \approx \$852%%MATH1%%\text{Ending WIP} = \$650 + \$650 = \$1{,}300$$