Question

Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $219,450 and total machine hours at 62,700. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labo cost, and machine hours for each job: Direct materials used Direct labor Machine hours Job 101 $ 11,700 $ $ 17,400 $ 1,800 hours Job 102 Job 103 Total 8,400 $4,500 $ 24,689 5.100 $4,600 $ 27,100 3,000 hours 700 hours 5,5e0 hours Job 101 was completed and sold for $50.800 Job 102 was completed but not sold. Job 103 is still in process Actual overhead costs recorded during the first month of operations totaled $15.150. Required: 1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion 2. Prepare the journal entries to recognize the sales revenue and cost of goods sold for Job 101. 3. Prepare the journal entry to transfer the balance of the Manufacturing Overhead account to Cost of Goods Sold. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field. Do not round your intermediate calculations.) View transaction list Journal entry worksheet A B C D Record the transfer of completed job 102 to finished goods inventory. Note: Enter debts before credits Transaction General Journal 01 Debit Credit

Answer 1

	Account titles	Debit	Credit
1	Finished Goods Inventory	24,000.00
	Work in Process inventory		24,000.00
2a	Cost of Goods Sold	35,400.00
	Finished Goods Inventory		35,400.00
2b	Cash	50,800.00
	Sales Revenue		50,800.00
3	Manufacturing overhead	4,100.00
	Cost of Goods Sold		4,100.00