Question

Shamrock Industries uses process costing. All of the company's manufacturing activities take place in a single processing department. The following Information was available for the month of June. $ Direct materials Direct labor Manufacturing overhead applied Total costs to account for in June 79,000 28,000 40,000 147,00 $ 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 a journal entry to summarize the total manufacturing costs applied to production in June. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the manufacturing costs assigned to production during June. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

la) The journal entry to sum - Uring costs ummarize total manufat- -follows: Particulars Work in process inventory Debit() Credit Ct) L47,000 Direct materials Direct labour 79000 28000 Manufactoring overhead (To record the total marutacturing costa to production in 40000 *Wort in debiled as it will be shown progress Loss profit and is an expense & all The related credited as because they items have been are Tepresented a whole. by wiP as 6) The journal entry to transfer completed units from WIP to FG The warehouse as follows is Particulars Debit C) Credit C) Pinished goods inventory Work in progcess inventory ,u7,000 ,47,000 (To record The transfer of WIP to fG) units from

Working Note: Calculation of amount of finished goods invenitory Amount of finisbed goode inventory Total costs. x No.of completed No.of units units 147000 x 13250 13250 © Journal entry to record the sale of & related cost of 10000 unit sold goods Debit s) Credit Cf) Particulars Accounts. $ 2,50,000 receivable $2,50,000 Sales To (To record the sale of 10000 units sold at a price of $25 per unit) '1,10,000 Cast of goods sold finisbed goods invertory t,10,000 (To record the coGs of price of at a LO00O Unit $ IL pu)