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 $1$ $$56,000$

Direct material $157,500$

Direct labor $112,000$

Manufacturing overhead applied $119,000$

Assume that completed production for June includes Jobs $107,108,$ and $109$ with total costs of $$98,000,$ $$206,500,$ and $$87,500,$ 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 $30$ $Answer

$0$

General Journal

Description Debit Credit

Answer

Finished goods inventory

Answer

$0$

Answer

$0$

Answer

Work in process inventory

Answer

$0$

Answer

$0$

b$.$ Using general journal entries, record the sale of Job $107$ for $$140,000$ on account.

General Journal

Description Debit Credit

Answer

Cost of goods sold

Answer

$0$

Answer

$0$

Answer

Finished goods inventory

Answer

$0$

Answer

$0$

To transfer cost to expense.

Answer

Accounts receivable

Answer

$0$

Answer

$0$

Answer

Sales

Answer

$0$

Answer

$0$

To record sale of job $107.$