Exercise 15 5 Manufacturing cost flows LO P1, P2, P3 Custom Cabinetry has one job in process (Job 120) as of June 30 at that time, its job cost sheet reports direct materials of $7,200, direct labor of $3,900, and applied overhead of $3,315 Custom Cabinetry applies overhead at the rate of 85 of direct labor cost During July, Job 120 is sold (on account) for $26,500, Job 121 is started and completed, and Job 122 is started and still in process at the end of the month Custom Cabinetry incurs the following costs during July July Product Costs Job 120 Job 121 Job 122 Total Direct materials $ 1,700 $ 7,000 $ 2,700 $ 11,400 Direct labor 2,500 5,000 3,600 11,100 Overhead applied 1 Prepare journal entries for the following in July Direct materials used in production Direct labor used in production Overhead applied The sale of Job 120 Cost of goods sold for Job 120 2 Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory general ledger accounts (Assume there are no jobs in Finished Goods Inventory as of June 30 ) Record the entry to assign direct materials to job Note Enter debits before credits Transaction General Journal Debit Credit a Work in process inventory 11,400 Raw materials inventory 11,400 Record the entry to assign direct labor to job Note Enter debits before credits Transaction General Journal Debit Credit b Work in process inventory 11,100 Factory wages payable 11,100 Record the application of overhead to work in process Note Enter debits before credits Transaction General Journal Debit Credit c Work in process inventory Factory overhead Record the sale of Job 120 on account Note Enter debits before credits Transaction General Journal Debit Credit d Record cost of goods sold for Job 120 Note Enter debits before credits Transaction General Journal Debit Credit e Complete this question by entering your answers in the tabs below Required 1 Required 2 Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory general ledger accounts (Assume there are no jobs in Finished Goods Inventory as of June 30 ) Work in Process Finished Goods Job Direct materials Direct labor Overhead Total cost $0 $0

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 25, 2024

Exercise 15-5 Manufacturing cost flows LO P1, P2, P3 Custom Cabinetry has one job in process (Job 120) as of June 30; at that time,

Exercise 15-5 Manufacturing cost flows LO P1, P2, P3

Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $7,200, direct labor of $3,900, and applied overhead of $3,315. Custom Cabinetry applies overhead at the rate of 85% of direct labor cost. During July, Job 120 is sold (on account) for $26,500, Job 121 is started and completed, and Job 122 is started and still in process at the end of the month. Custom Cabinetry incurs the following costs during July.

July Product Costs	Job 120		Job 121		Job 122		Total
Direct materials	$	1,700	$	7,000	$	2,700	$	11,400
Direct labor		2,500		5,000		3,600		11,100
Overhead applied		?		?		?		?

1. Prepare journal entries for the following in July.

Direct materials used in production.
Direct labor used in production.
Overhead applied.
The sale of Job 120.
Cost of goods sold for Job 120.

2. Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory general ledger accounts. (Assume there are no jobs in Finished Goods Inventory as of June 30.)

Record the entry to assign direct materials to job.