Reference no: EM133112164

Question - Johnson Company uses a job-order costing system and started the month of July with four jobs in process. The cost of beginning work in process plus the costs added during July are shown below:

	Job A	Job E
Beginning cost	$4,900	$7,700
	Job O	Job U
Beginning cost	$6,300	$2,100
COSTS ADDED DURING JULY:
	Job A	Job E
Direct materials used	$5,200	$3,900
Direct labor cost	$6,400	$4,300
	Job O	Job U
Direct materials used	$4,600	$2,800
Direct labor cost	$5,100	$3,700

Johnson Company applies overhead to jobs at a rate of 70% of direct materials used. During July, Johnson completed and sold Job A. Job E was completed during July, but only one-third of the job was sold as of the end of July. Job O was completed in July but none of the job was sold during July. Job U was not completed by the end of July.

Johnson Company had actual overhead cost of $8,500 for July.

Required -

1. Calculate Johnson Company's finished goods inventory balance at July 31.

2. Calculate Johnson Company's cost of goods sold for July after the overhead variance is closed.