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Job costing

There is not a beginning inventory of lamps.

I am attempting to solve a problem, I have been over this thing backwards and forwards and need a lot of direction.

Using a job order costing system. On the 1st of May, work in process inventory account shows a beginning balance of 161,000. Production activity for May was as follows: Materials costing 91,000, along with supplies of 18,000. were requisitioned into production. The total payroll was 316,000 of which 77,000 was indirect labor. Manufactoring overhead is applied at a rate of 120% of direct labor cost. May's cost of goods sold was 692,000. Finished goods inventory was 71,500 on May 1 and 84,000 on May 31. Overhead accounts are closed out at the end of the year.

What I need to answer is-

1. What is the cost of goods completed for May?
2. What is the work in process ending inventory on May 31?
3. one of the jobs that was started in May was completed in june, for 200 special order lamps. The following costs were applied to this order as of June 1- direct materials of 1400; direct labor of 1800; overhead of 2160. In June 580 in direct materials cost and 900 of direct labor cost were added to complete the job. What was the cost per unit for this job?

I have read this chapter over and over and can't seem to grasp this concept. What I don't understand is the use of T accounts to figure part one and part two. The examples in the book use the T accounts, but it just isn't working for me. What am I missing here?

Solution Preview

Opening Closing
WORK IN PROCESS INVENTORY 161000 Finished goods inventory 84000
FINISHED GOODS 71500 Work in Process Inventory 155800 ( Balancing Figure)
Material 91000
supplies 18000 Cost of goods completed in May 704500 (From F31)
PAYROLL 316000
MANUFACTURING ...

Solution Summary

This explains job costing with the help of numerical example

$2.19