This problem is a continuation of problem 3-18. Prepare journal entries based on the calculations in problem 3-18 for Mendelsohn Manufacturing.

Required: Appendix: Prepare the following journal entries:

1. Record direct materials for each job.

2. Record direct labor for each job.

3. Record the allocation of manufacturing overhead for each job.

4. Record the transfer to finished goods’of Job A.

Problem 3-18

Mendelsohn Manufacturing began two jobs during the month of January 2004. There was no beginning inventory. The following costs were incurred:

Mendelsohn’s estimated manufacturing overhead for 2004 is \($117,000\), and the estimated direct labor cost is \($90,000\). Mendelsohn applies overhead to production based on direct labor cost. During the month, Job A was completed but not sold. Job B has not been completed.

Required:

a. Calculate the cost of the ending work-in-process inventory as of January 31, 2004.

b. Calculate the cost of the finished goods inventory as of January 31, 2004.

Transcribed Image Text:

Direct material Direct labor Job A $2,000 4,000 Job B $3,000 5,000