Question

June production generated the following activity in Chopper Chassis Company's Work-in-Process Inventory account: F: (Click the icon to view the activity.) Additionally, Chopper has completed Jobs 142 and 143, with total costs of $40,000 and $36,000, 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 Requirement 2. A T-account for Work-in-Process Inventory has been opened for you. Enter the beginning balance "Beg. Bal." on the first line of the T-account. Post the June activity, including the journal entry made in Requirement 1, using the appropriate descriptions as posting references. Compute the ending balance "Bal." in the Work-in-Process Inventory account on June 30. (Abbreviation used: MOH = manufacturing overhead.) Work-in-Process Inventory Requirement 3. Prepare the journal entry to record the sale on account of Job 143 for $53,000. Also, prepare the journal entry to record Cost of Goods Sold for Job 143. (Prepare a single journal entry for this event. Record debits first, then credits. Exclude explanations from any journal entries.) Begin by preparing the entry to record the sale on account. Do not record the cost of the sale with this entry. We will do that separately in the following step.

Answer 1

Answer is given below

Credit Date June Accounts Finished Goods To Work in process Debit $76,000 $76,000 $26,000 Opening Balance Direct Material Direct Labor Manufacturing Overhead Total Ending Balance WIP Work in process Inventory $76,000 Transfer to Finished Goods $28,000 $32,000 $12,800 $98,800 $76,000 Total $22,800 3 Credit Date June Accounts Accounts Receivable To Sales Debit $53,000 $53,000 Date Credit June Accounts | Debit Cost of Goods sold $36,000 To Finished Goods Inventory $36,000 4 The Gross profit on Job 143 is $17,000 Gross profit Sales Less: Cost of goods sold Gross profit $53,000 $36,000 $17,000