Question

Aquazona Pool Company is a custom pool builder. The company recently completed a pool for the Drayna family (Job 1324) as summarized on the incomplete job cost sheet below.. Assume the company bids its pools at total manufacturing cost plus an additional 37 percent. Job Cost Sheet Job Number : 1324 Date Started: 7/8/2018 Date Completed: 8/30/2018 Description: Drayna Pool Applied Manufacturing Overhead Direct Materials Direct Labor Req. No MR 3345 $1,500 Ticket Amount Amount Hours Amount Hours Rate тт 335 тт 340 тт 385 тт 385 TT 425 26 530.40 MR 3372 693.60 970 34 1,160 1,770 1,960 MR 4251 25 510.00 775.20 673.20 MR 4263 38 MR 5236 33 $7,360 $3,182.40 156 Cost Summary $7,360.00 Direct Materials Cost Direct Labor Cost 3,182.40 Applied Manufacturing Overhead Total Cost The company applies overhead to jobs at a rate of $10.20 per direct labor hour. Required: Prepare journal entries to record cost of goods sold and sales revenue for Job 1324. Assume the total cost of Job 1324 is currently in the Finished Goods Inventory Account and that the Draynas paid for the pool with cash. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to 2 decimal places.) Viou trancaotion lict

Answer 1

Job Cost Sheet
Job Number:1324
Date started:7/8/2018
Description : Drayna Pool
Direct materials		Direct labor				Applied
Reg. no.	amount	ticket	hours	Amount	Manufacturing overhead
					Hours	Rate	Amount
MR 3345	1500	TT 335	26	530.4	26	10.2	265.2
MR 3372	970	TT340	34	693.6	34	10.2	346.8
MR 4251	1160	TT 385	25	510	25	10.2	255
MR 4263	1770	TT 385	38	775.2	38	10.2	387.6
MR 5236	1960	TT 425	33	673.2	33	10.2	336.6
	7360		156	3182.4	156	10.2	1591.2
	Cost summary		$
Direct materials cost				7360
Direct labor cost				3182.4
Applied manufacturing overhead				1591.2
total cost				12133.6
journal entries
transaction	General journal	debit	credit
a.	Direct materials cost a/c                   Dr	7360
	Direct labor cost    a/c                          Dr	3182.4
	Applied manufacturing overhead a/c Dr	1591.2
	Cash		12133.6
	(Being all expenses are incurrend in cash)
b.	Finished Goods Inventory a/c               Dr	12133.6
	Direct materials cost		7360
	Direct labor cost		3182.4
	Applied manufacturing overhead		1591.2
	(Being all expenses are transfer to finished goods)
c.	Cost Of Goods Sold a/c ……………………..Dr	12133.6
	Finished Goods Inventory a/c		12133.6
	(Being finished good transfer to COGS)
e.	Cash a/c ……………………………………………….Dr	16623.03
	Sales Revenue a/c		16623.03
	(Being sales are made with adding 37 % profit)