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 $8,100, direct labor of $3,700, and applied overhead of $2,960. Custom Cabinetry applies overhead at the rate of 80% of direct labor cost. During July, Job 120 is sold (on account) for $26,500, 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 Costa Direct materials Direct labor Overhead applied Job 120 G1,900 3, 900 Job 121 $7,600 1,900 Job 122 Total $13, 400 12,300 $3,900 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 Wwork 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 jourmal entries for the above transactions in July. View transaction list Journal entry worksheet 1. Record the entry to assign direct materials to job. Note: Enter debits before credita Transaction General Journal Debit Credit a. 5 of 7 Prev Next >

Answer 1

Journal Entries Date Account Title and Explaination Debit Credit Post. Ref. Work In Process - Job 120 Work In Process - Job 121 Work In Process - Job 122 Direct Materials Inventory (To record Direct Materials used in Production) 1,900.00 7,600.00 3,900.00 $ 13,400.00 Work In Process - Job 120 Work In Process - Job 121 Work In Process - Job 122 Payroll Payable (To record Direct Labor used in Production) 3,900.00 4,900.00 3,500.00 $ 12,300.00

Work In Process - Job 120 ($3900 x 80%) Work In Process - Job 121($4900 x 80%) Work In Process - Job 122 ($3500 x 80%) Overhead Cost (To record Application of Overhead Cost) 3,120.00 3,920.00 2,800.00 9,840.00 $ 26,500.00 Accounts Receivable Sales Revenue |(To record Sale of Job 120 on account) S 26,500.00 $ 23,680.00 Cost of Goods Sold Finished Goods Inventory ($8100+$3700+$2960+$1900+$3900+$3120) (To record Cost of Goods Sold for Job 120) $ 23,680.00