Question

Jensen Fences overhead rate based on direct la the month of June. uses job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined bor costs. The following information appears in the company's Work in Process Inventory account for Debits to account: Balance, June 1 Direct materials Direct labor Manufacturing overhead (applied to jobs as 125% of direct labor cost) 5,eee 18,800 12,300 15,375 Total debits to account $50,675 Credits to account: Transferred to Finished Goods Inventory account 44,800 Balance, June 30 6,675 Required a. Assuming that the direct labor charged to the jobs still in process at June 30 amounts to $1,400, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of June 30. b. Prepare general journal entries to summarize: 1. The manufacturing costs (direct materials, direct labor, and overhead) charged to production during June. 2. The transfer of production completed during June to the Finished Goods Inventory account. 3. The cash sale of 80 percent of the merchandise completed during June at a total sales price of $49,000. Show the related cost of goods sold in a separate journal entry. Complete this question by entering your answers in the tabs below. Prev 1 of 3 Next ere to search

Answer 1

Answer:

A)

Assuming that the direct labor charged to the jobs still in process at June 30 amounts to$1,400, compute the amount of manufacturing overhead and the amount of direct materials

that have been charged to these jobs as of June 30

Direct Labor	1400
Overhead app. rate x125%	125%
Manufacturing Overhead applied (1400x125%)	1750
Total cost of jobs in process	5000
Less: Direct Labor included	1400
Manufacturing overhead included	1750
Direct materials charged to job (5000-1400-1750)	1850

________________________________________________

B)

Prepare general journal entries to summarize:

1.

The manufacturing costs (direct materials, direct labor, and overhead) charged to productionduring June

Description	Debit $	Credit $
Work in Progress Inventory	45375
Materials inventory		18000
Direct Labor		12000
Manu. Overhead		15375
( To record costs charged to jobs during Jun)

2

The transfer of production completed during June to the Finished Goods Inventory account.

Description	Debit $	Credit $
Finished Goods Inventory	44,000
Work in Progress Inventory		44,000
(To transfer cost of jobs completed in June to finished goods inventory)

3

The cash sale of 80 percent of the merchandise completed during June at a total sales price of $49,000. Show the related cost of goods sold in a separate journal entry

Description	Debit $	Credit $
Cash	49,000
Sales		49,000
(To record cash sale of 80% of goods completed in June)

Description	Debit $	Credit $
Cost of Goods sold (44,000 x 80%)	35,200
Finished Goods Inventory		35,200
(To record Cost of Goods sold)

Note:

As this question has more then one question so as per guideline I answered the first question