September production generated the following activity in Rohr Chassis Company's Work in Process Inventory account:

Completed production, not yet recorded, consists of Jobs 142 and 143, with total costs of $40,000 and $38,000, respectively.

Requirements 

1. Compute the cost of work in process at September 30.

2. Prepare the journal entry for production completed in September.

3. Prepare the journal entry to record the sale (on credit) of Job 143 for $45,000. Also make the cost-of-goods-sold entry,

4. What is the gross profit on Job 143? What other costs must this gross profit cover?

Transcribed Image Text:

September 1 Bal. Direct materials used Direct labor assigned to jobs Work in Process Inventory 20,000 30,000 32,000 Manufacturing overhead allocated to jobs 16,000