Question

June production generated the following activity in Bentley Chassis Company's Work-in-Process Inventory account: (Click the icon to view the activity.) Additionally, Bentley has completed Jobs 142 and 143, with total costs of $37,000 and $48,000, respectively. Read the requirements. Requirement 1. Prepare the journal entry for production completed in June. (Prepare a single journal entry for this event. Record debits first, then credits. Exclude explanations from any journal entries.) Date Accounts Debit Credit June i Requirements i Data Table 1. Prepare the journal entry for production completed in June. 2. Open a T-account for Work-in-Process Inventory. Post the journal entry made in Requirement 1. Compute the ending balance in the Work-in-Process Inventory account on June 30. 3. Prepare the journal entry to record the sale on account of Job 143 for $63,000. Also, prepare the journal entry to record Cost of Goods Sold for Job 143. 4. What is the gross profit on Job 143? June 1 balance Direct materials used Direct labor assigned to jobs Manufacturing overhead allocated to jobs 36,000 32,000 40,000 28,000 Print Done Print Done

Answer 1

solution:
Requirement 1.

Date	Accounts	Debit	Credit
June	Finished Goods Inventory	$85,000
	Work-in Process Inventory		$85,000

Req. 2

85,000 Work-in Process Inventory Beg. Bal 36,000 June 32,000 40,000 28,000 End. Bal. 51,000

Req. 3.

Date	Accounts	Debit	Credit
N/A	Accounts Receivable	$63,000
	Sales revenue		$63,000
	(To record sale on account)
N/A	Cost of Goods Sold	$48,000
	Finished Goods Inventory		$48,000
	(To record COGS for job 143)

Required 4 :

   Gross profit on sale of Job 143 = Sales revenue - COGS

= $63,000 - 48,000

= $15,000

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