Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Finished Goods and Cost of Goods Sold Before the completed production for June is recorded, the work in process inventory account for James Company appears
Finished Goods and Cost of Goods Sold Before the completed production for June is recorded, the work in process inventory account for James Company appears as follows: Work in Process Inventory Balance June 1 $40,000 Direct material 112.500 Direct labor 80,000 Manufacturing overhead applied 85,000 Assume that completed production for June includes Jobs 107, 108, and 109 with total costs of $70,000, $147,500, and $62,500, respectively. a. Determine the cost of unfinished jobs at June 30 and prepare a journal entry to record completed production. Work in process balance as of June 30 $ 17,000 X General Journal Description Debit Credit Finished goods inventory 71,000 x 0 Work in process inventory 0 71,000 X b. Using general journal entries, record the sale of Job 107 for $100,000 on account. General Journal Description Debit Credit Cost of goods sold 31,000 X 0 Finished goods inventory O 31.000 x To transfer cost to expense. Accounts receivable 45,000 X 0 Sales 0 45,000 X To record sale of job 107
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started