Q17E-c - Horngren'S Financial And Managerial Accounting

Question

Root Trailers’ job cost records yielded the following information:

Use the dates in the table to identify the status of each job. Compute the following

balances for Root:

c. Cost of Goods Sold for July

Step-by-Step Solution

Answer

The cost of goods sold for July is $17,100.

Step 1: Cost of goods sold

Cost of goods sold means the total cost incurred by the companies in manufacturing the goods which are sold during a particular period. 

Step 2: Cost of goods sold for july

As on July 31, only Job no. 1 and 2 are completed and sold. Hence, only job no. 1 and 2 are considered for computing the cost of goods sold.

$$\begin{gathered} \mathbf{Cost}\mathbf{ }\mathbf{of}\mathbf{ }\mathbf{goods}\mathbf{ }\mathbf{sold}\mathbf{ }\mathbf{for}\mathbf{ }\mathbf{july}\mathbf{=}\mathbf{Total}\mathbf{ }\mathbf{cost}\mathbf{ }\mathbf{of}\mathbf{ }\mathbf{Job}\mathbf{ }\mathbf{no}\mathbf{.}\mathbf{1}\mathbf{+}\mathbf{Total}\mathbf{ }\mathbf{cost}\mathbf{ }\mathbf{of}\mathbf{ }\mathbf{Job}\mathbf{ }\mathbf{no}\mathbf{.}\mathbf{2} \\ \mathbf{=}\mathbf{\$}\mathbf{3}\mathbf{,}\mathbf{400}\mathbf{+}\mathbf{\$}\mathbf{13}\mathbf{,}\mathbf{700} \\ \mathbf{=}\mathbf{\$}\mathbf{17}\mathbf{,}\mathbf{100} \end{gathered}$$