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Job Cost Flows, Journal Entries On April 1, Sangvikar Company had the following balances in its inventory accounts: Materials Inventory$12,720Work-in-Process Inventory21,350Finished Goods Inventory8,600 Work-in-process inventory
Job Cost Flows, Journal Entries
On April 1, Sangvikar Company had the following balances in its inventory accounts:
Materials Inventory$12,720Work-in-Process Inventory21,350Finished Goods Inventory8,600Work-in-process inventory is made up of three jobs with the following costs:
Job 114Job 115Job 116Direct materials$2,804$2,640$3,650Direct labor1,8001,5604,300Applied overhead1,0809362,580During 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 $13 per hour; Job 115, 220 hours at $16 per hour; and Job 116, 80 hours at $18 per hour.
- Overhead is applied on the basis of direct labor cost.
- Actual overhead was $4,453.
- 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.
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