Question

Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of 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 $29,000. 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. Need help for the balance of the last journal entry. COGS & finished goods inventory

Exercise 15-5 Manufacturing cost flows LO P1, P2, P3 Custom Cabinetry has one job in process (Job 120) as of June 30, at that time, its job cost sheet reports direct materials of $7.200, 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 $29,000, 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 July Product Costs Direct waterials Direct labor Overhead applied Job 120 $2,700 3.200 Job 121 $6,400 3,900 ob 122 $4,200 2,900 Total $13,30 10,000 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 accounts (Assume there are no jobs in Finished Goods Inventory as of June 30) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries for the above transactions in July, View transaction list View journal entry worksheet No Transaction Credit General Journal Work in process inventory Raw materials inventory Debit 13.300 Work in process inventory 10.000

Answer 1

Transaction	General Journal	Debit	Credit
e.	Cost of goods sold	$23,775
	Finished goods inventory		$23,775
	Total of direct materials, direct labor, and overhead applied to this job
	in June ($15,155) and July($8,620)
	Working
	July Product Costs	Job 120	Job 121	Job 122	Total
	Direct materials	$2,700	$6,400	$4,200	$13,300
	Direct labor	$3,200	$3,900	$2,900	$10,000
	Overhead applied	$2,720	$3,315	$2,465	$8,500
		$8,620	$13,615	$9,565