Question

Requirement 3. Prepare journal entries to record the transfer of completed jobs from Work-in-Process Inventory to Finished Goods Inventory for November and December. (Record debits first, then credits. Exclude explanations from any journal entries.) Record November's entry first. Date Accounts Debit Credit Nov. 30 Now record December's entry. Date Accounts Debit Credit Dec. 31

Answer 1

1. Sloan uses a Job Costing system. We know this because Sloan costing records shows costs being accumulated for each job.

2.

Date	Work in Process Inventory		Finished Inventory		Cost of Goods Sold
	Job	Cost	Job	Cost	Job	Cost
Nov-30	3	$               500	2	$               2,000	1	$             1,900
	4	$               900
	Total	$           1,400	Total	$               2,000	Total	$             1,900
Dec-31	6	$               800	4	$               1,900	2	$             2,000
					3	$             2,200
					5	$                950
	Total	$               800	Total	$               1,900	Total	$             5,150

3.

Date	Account Titles	Debit	Credit
Nov-30	Finished Goods Inventory	$           3,900		=2000+1900
	Work in Process Inventory		$         3,900
	(Transfer of completed job)
Dec-31	Finished Goods Inventory	$           5,050		=1900+2200+950
	Work in Process Inventory		$         5,050
	(Transfer of completed job)

4.

Date	Account Titles	Debit	Credit
	Accounts Receivable	$           2,300
	Sales Revenue		$         2,300
	(Sales made on account)
	Cost of Goods Sold	$           2,200
	Inventory		$         2,200
	(Cost of Goods Sold for Job 3)

5.

Sales Revenue	$           2,300
Cost of Goods Sold	$           2,200
Gross Profit	$               100