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Ehrling Brothers Company makes jobs to customer order. During the month of July, the following occurred: Materials were purchased on account for $45,760. Materials totaling

Ehrling Brothers Company makes jobs to customer order. During the month of July, the following occurred:

  1. Materials were purchased on account for $45,760.
  2. Materials totaling $40,980 were requisitioned for use in producing various jobs.
  3. Direct labor payroll for the month was $25,600 with an average wage of $16 per hour.
  4. Actual overhead of $8,870 was incurred and paid in cash.
  5. Manufacturing overhead is charged to production at the rate of $5.40 per direct labor hour.
  6. Completed jobs costing $58,000 were transferred to Finished Goods.
  7. Jobs costing $59,000 were sold on account for $ 73,850. Make the entry to record the revenue from the sale first, followed by the entry to record the cost of the jobs.

Beginning balances as of July 1 were:

Materials Inventory $1,200
Work-in-Process Inventory 3,400
Finished Goods Inventory 2,620

Required:

1. Prepare the journal entries for the preceding events.

a.
b.
c.
d.
e.
f.
g (1).
g (2).

2. Calculate the ending balances of:

a. Materials Inventory $
b. Work-in-Process Inventory $
c. Overhead Control $
d. Finished Goods Inventory $

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