Recording finished jobs and sales. The Durand Company is a manufacturer of warm-up suits. It manufactures standard gray men’s, women’s, and children’s models for stock. In addition, the Durand Company accepts custom orders from colleges and universities to produce warm-up suits in the school’s colors.

On March 1, 19X6, the company’s inventory accounts showed the following balances:

Transactions relating to completion and sales of warm-up suits for the month of March were as follows:

Instructions 1. Open general ledger accounts for the following: Accounts Receivable 111, Work in Process 122, Finished Goods 126, Sales 401, and Cost of Goods Sold 415. Enter the March 1, 19X6, balances in the inventory accounts.

2. Open stock ledger cards in the finished goods ledger as follows: Men's Warm-up Suits, Number 100; Women's Warm-up Suits, Number 101; and Children's Warm-up Suits, Number 102. Enter the March 1, 19X6, balances.

3. Record the March transactions in the completed jobs journal and the sales jour- nal. Use page number 12.

4. Post the jobs manufactured for stock to the finished goods ledger.

5. Post the summary totals of the completed jobs journal and the sales journals to the general ledger accounts.

6. Prepare a schedule of finished goods. This schedule should agree with what account in the general ledger?

Transcribed Image Text:

Work in Process $6,215 Finished Goods 4,375 On March 1, 19X6, the finished goods ledger included three stock ledger cards, with the following information: Number 100 101 102 Stock Item Men's Warm-Up Suits Women's Warm-Up Suits Children's Warm-Up Suits Balance 100 at $20 each 125 at $15 each 50 at $10 each