Question

Retu 5 direct labor of $2,800, and applied overhead of $2,240. Custom Cabinetry applies overhead at the rate of 80% of direct labor cost. During July, Job 120 is sold (on account) for $22,000, 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. 2 points July Product Costs Direct materials Direct labor Overhead applied Job 120 $1,000 2,200 ? Job 121 Job 122 $6,000 $2,500 3,700 2,100 ? Total $9,500 8,000 ? & 03:33:23 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 Work in Process Inventory and the Finished Goods Inventory general ledger accounts. (Assume there are no jobs in Finished Goods Inventory as of June 30.) Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries for the above transactions in July. No Transaction General Journal Debit Credit 1 а 9,500 Work in process inventory Raw materials inventory 9.500 2 b. 8.000 Work in process inventory Factory wages payable ool 8,000 3 C. Work in process inventory 8.550 X Mc Graw Hill 5 of 10 HA < Prev Next >

Answer 1

Answer:

Journal entries:

No.	Account title and Explanation	Debit($)	Credit ($)
A.	Work in process	9,500
	Direct material		9,500
	(To record direct material used)
B.	Work in process	8,000
	Wages payable		8,000
	(To record direct labor)
C.	Work in process (8,000 × 80%)	6,400
	Manufacturing overhead		6,400
	(To record applied overhead)
D.	Account receivable	22,000
	Sales revenue		22,000
	(To record sales)
E.	Cost of goods sold	16,000
	Work in process		16,000
	(To record cost of goods sold)

Requirement 2:

	Work in process	Finished goods
Job	122	121
Direct material	2,500	6,000
Direct labor	2,100	3,700
Overhead	1,680	2,960
Total	6,280	12,660

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