(Journal entries) Rutherford Custom Concrete uses a job order costing system based on actual costs. The following...
Question:
(Journal entries) Rutherford Custom Concrete uses a job order costing system based on actual costs. The following transactions relate to a single period in which the beginning inventory of Direct Material Inventory was $30,000, of Work in Process Inventory was $75,000, and of Finished Goods Inventory was $63,000.
■ Direct material purchases on account were $210,000.
■ Direct labor cost for the period totaled $197,500 for 25,000 direct labor hours.
■ Actual overhead costs were $172,000.
■ Actual overhead is applied to production based on direct labor hours.
■ The ending inventory of Direct Material Inventory was $12,000.
■ The ending inventory of Work in Process Inventory was $32,000.
■ Of the goods finished during the period, goods costing $295,000 were sold for $383,000.
Prepare all journal entries for the above transactions and determine the ending balance in Finished Goods Inventory.
LO1
Step by Step Answer:
Cost Accounting Traditions And Innovations
ISBN: 9780538880473
3rd Edition
Authors: Jesse T. Barfield, Cecily A. Raiborn, Michael R. Kinney