Question

11 Custom Cabinetry has one job in process (Job 120) as of June 30, at that time, its job cost sheet reports direct materials of $7,500. direct labor of $4,300, and applied overhead of $3,655. Custom Cabinetry applies overhead at the rate of 85% of direct labor cost. During July. Job 120 is sold (on account) for $31.000, Job 121 is started and completed, and Job 122 is started and still in process at the end of the month. Custom Cabinetry incurs the following costs during July 053 points July Product Costs Direct materials Direct labor Overhead applied ob 120 $2,1ee 3,100 Job 121 $7,40 5.400 Job 122 $4,000 2.200 Total $13,500 10,700 eBook References 1. Prepare journal entries for the following in July, a. Direct materials used in production b. Direct labor used in production c. Overhead applied d. The sale of Job 120 e Cost of goods sold for Job 120 2 Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory general ledger aceptints. Assume there are no jobs in Finished Goods Inventory as of June 30) Untoring your answers in the tabs below

Answer 1

1) Journal entry

No	General Journal	Debit	Credit
1	Work in process	13500
	Direct material		13500
2	Work in process	10700
	Wages payable		10700
3	Work in process (10700*85%)	9095
	Manufacturing overhead		9095
4	Account receivable	31000
	Sales revenue		31000
5	Cost of goods sold	23290
	Finished goods		23290

b) Calculate following

	Work in process	Finished goods
Job	122	121
Direct material	4000	7400
Direct labor	2200	5400
Overhead	1870	4590
Total cost	8070	17390