Question

Journal Entries, T-Accounts Ehrling Brothers Company makes jobs to customer order. During the month of July, the following occurred: Materials were purchased on account for $45,620. Materials totaling $40,880 were requisitioned for use in producing various jobs. Direct labor payroll for the month was $19,200 with an average wage of $12 per hour. Actual overhead of $8,870 was incurred and paid in cash. Manufacturing overhead is charged to production at the rate of $5.40 per direct labor hour. Completed jobs costing $59,000 were transferred to Finished Goods. Jobs costing $58,000 were sold on account for $ 73,850. Make the entry to record the revenue from the sale first, followed by the entry to record the cost of the jobs. Beginning balances as of July 1 were: Materials Inventory $1,100 Work-in-Process Inventory 3,400 Finished Goods Inventory 2,620

Journal Entries, T-Accounts Ehrling Brothers Company makes jobs to customer order. During the month of July, the following occurred: a. Materials were purchased on account for $45,620. b. Materials totaling $40,880 were requisitioned for use in producing various jobs. c. Direct labor payroll for the month was $19,200 with an average wage of $12 per hour. d. Actual overhead of $8,870 was incurred and paid in cash. e. Manufacturing overhead is charged to production at the rate of $5.40 per direct labor hour. f. Completed jobs costing $59,000 were transferred to Finished Goods. g. Jobs costing $58,000 were sold on account for $ 73,850. Make the entry to record the revenue from the sale first, followed by the entry to record the cost of the jobs. Beginning balances as of July 1 were: Materials Inventory $1,100 Work-in-Process Inventory 3,400 Finished Goods Inventory 2,620 Required:

Answer 1

1.

Date Account titles & Explanations Debit Credit a $ 45,620.00 Raw materials inventory Accounts payable $ 45,620.00 b $ 40,880.00 Work in process inventory Raw materials inventory $ 40,880.00 $ 19,200.00 work in process inventory wages payable $ 19,200.00 $ 8,870.00 Manufacturing overhead cash $ 8,870.00 e $ 8,640.00 work in process inventory Manufacturing overhead ($19200/12*5.4) $ 8,640.00 f $ 59,000.00 finished goods inventory work in process inventory $ 59,000.00 Accounts receivable $ 73,850.00 sales $ 73,850.00 g2) $ 58,000.00 cost of goods sold finished goods inventory $ 58,000.00

2.

a) b) c) d) Materials inventory work in process inventory overhead control Finished goods inventory $ $ $ $ 5,740.00 13,120.00 230.00 3,620.00

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