Exercise 17.3 (Algo) Journal Entries in Job Order Costing (LO17-1, LO17-2, LO17-3, LO17-4, LO17-5)

King Tool is a machine shop that uses job order costing. Overhead is applied to individual jobs at a predetermined rate based on direct labor costs. The following is a job cost sheet for job no. 321.

JOB COST SHEET
JOB NUMBER: 321	DATE STARTED: May 10
PRODUCT: 2" Brass Check Valves	DATE COMPLETED: May 21
UNITS COMPLETED: 5,000
Direct materials used		$	7,100
Direct labor			1,100
Manufacturing overhead applied			2,900
Total cost of job no. 321		$	11,100
Unit cost ($11,100 5,000 units)		$	2.22

a. Summarize the manufacturing costs charged to job no. 321. (Use one compound entry.)

b. Record the completion of job no. 321.

c. Record the credit sale of 2,000 units from job no. 321 at a unit sales price of $10. Record in a separate entry the related cost of goods sold.

Prepare general journal entries to the above statements: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)