On January 1,Alistair Manufacturing had a beginning balance in Work-in-Process Inventory of $160,000 and a beginning balance in Finished Goods Inventory of $26,000.During the year,Alistair incurred manufacturing costs of $206,000. During the year,the following transactions occurred:
Job C-62 was completed for a total cost of $142,000 and was sold for $158,000.
Job C-63 was completed for a total cost of $180,000 and was sold for $210,000.
Job C-64 was completed for a total cost $82,000 but was not sold as of year-end.
The Manufacturing Overhead account had an unadjusted credit balance of $24,000 and was adjusted to zero at year-end.
What was the amount of gross profit reported by Alistair at the end of the year?

Question

Quizplus · Accepted Answer

Total manufacturing costs incurred: $206,000
Total cost of completed jobs: $142,000 + $180,000 + $82,000 = $404,000
Cost of goods sold: $142,000 + $180,000 = $322,000
Gross profit: ($158,000 - $142,000) + ($210,000 - $180,000) = $46,000
So, the answer is B.

On January 1,Alistair Manufacturing Had a Beginning Balance in Work-In-Process