Job Cost Flows, Journal Entries

On April $1,$ Sangvikar Company had the following balances in its inventory accounts:

Materials Inventory $$12,760$

Work$-$in$-$Process Inventory $21,350$

Finished Goods Inventory $8,700$

Work$-$in$-$process inventory is made up of three jobs with the following costs:

Job $114$ Job $115$ Job $116$

Direct materials $$2,804$ $$2,640$ $$3,650$

Direct labor $1,8001,5604,300$

Applied overhead $1,0809362,580$

During April, Sangvikar experienced the transactions listed below.

Materials purchased on account, $$28,000.$

Materials requisitioned: Job $114,$ $$16,500$; Job $115,$ $$12,400$; and Job $116,$ $$5,000.$

Job tickets were collected and summarized: Job $114,150$ hours at $$14$ per hour; Job $115,220$ hours at $$15$ per hour; and Job $116,80$ hours at $$18$ per hour.

Overhead is applied on the basis of direct labor cost.

Actual overhead was $$4,411.$

Job $115$ was completed and transferred to the finished goods warehouse.

$(1)$ Job $115$ was shipped, and $(2)$ the customer was billed for $125$ percent of the cost.

Required:

Question Content Area

$1.$ Prepare journal entries for the April transactions.

a$.$

Materials

$28,000$

Accounts Payable

$28,000$

b$.$

Work in Process

$33,900$

Materials

$33,900$

c$.$

Work in Process

$6,840$

Wages Payable

$6,840$

d$.$

Work in Process

$5,435\mathrm{.}70$

Overhead Control

$5,435\mathrm{.}70$

e$.$

Overhead Control

$4,411$

Various Accounts

$4,411$

f$.$

Finished Goods

$6,336$

Work in Process

$6,336$

g $(1).$

Cost of Goods Sold

$6,336$

Finished Goods

$6,336$

g $(2).$

Accounts Receivable

$7,920$

Sales Revenue

$7,920$

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Review how the flow of inventory from Raw materials to Work in Process to Finished goods is journalized.

Question Content Area

$2.$ Calculate the ending balances of each of the inventory accounts as of April $30.$ Post the entries to the T$-$accounts in the same order in which they were journalized.

Materials

Bal.

fill in the blank $454049$f$9706307$e$\_2$

$12,760$

$($b$)$

fill in the blank $454049$f$9706307$e$\_4$

$33,900$

$($a$)$

fill in the blank $454049$f$9706307$e$\_6$

$28,000$

fill in the blank $454049$f$9706307$e$\_7$

$6,860$

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Set up T accounts to calculate ending balances inventory.

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Work in Process

Bal.

fill in the blank $1$b$2$cad$06601$efde$\_2$

$21,350$

Bal.

fill in the blank $1$b$2$cad$06601$efde$\_4$

$6,840$

$($b$)$

fill in the blank $1$b$2$cad$06601$efde$\_6$

$33,900$

$($c$)$

fill in the blank $1$b$2$cad$06601$efde$\_8$

$6,840$

$($d$)$

fill in the blank $1$b$2$cad$06601$efde$\_10$

$5,435\mathrm{.}70$

fill in the blank $1$b$2$cad$06601$efde$\_11$

$59,350$

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Set up T accounts to calculate ending balances inventory.

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Finished Goods

Bal.

fill in the blank $31$d$814$f$9$c$06$e$025\_2$

$8,700$

$($g$1)$

fill in the blank $31$d$814$f$9$c$06$e$025\_4$

$6,336$

$($f$)$

fill in the blank $31$d$814$f$9$c$06$e$025\_6$

$6,336$

fill in the blank $31$d$814$f$9$c$06$e$025\_7$

$2,364$

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Set up T accounts to calculate ending balances inventory.