Question

Shamrock Industries uses process costing. All of the company's manufacturing activities take place in a single processing departm The following information was available for the month of June. Direct materials Direct labor Manufacturing overhead applied Total costs to account for in June 81,000 29,000 41,000 $151,000 The amounts of work in process at the beginning and end of the month were immaterial and assigned no dollar value. During June, 13,250 units were completed, of which 10,000 were sold on account at $25 per unit. a. Prepare a journal entry to summarize the total manufacturing costs applied to production in June. b. Prepare the journal entry to transfer completed units from work in process to the finished goods warehouse in June. c. Prepare the journal entries to record the sale of 10,000 units manufactured during the period and the related cost of goods sold. Complete this question by entering your answers in the tabs below Required A Required B Required C Prepare the journal entries to record the sale of 10,000 units manufactured during the period and the related cost of goods sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations to 2 decimal places.) K Prev 3 of 3 Next > e to search

Answer 1

		Debit	Credit
a	Work in Process inventory	151000
	Direct materials		81000
	Direct labor		29000
	Manufacturing overhead		41000
b	Finished goods inventory	151000
	Work in Process inventory		151000
c	Accounts Receivable	250000		=10000*25
	Sales		250000
	Cost of goods sold	114000		=10000*11.4
	Finished goods inventory		114000
	Note: Cost per unit = 151000/13250=$11.40