Journal Entries, T-Accounts

Ehrling Brothers Company makes jobs to customer order. During the month of July, the following occurred:

1. Materials were purchased on account for $45,760.
2. Materials totaling $40,980 were requisitioned for use in producing various jobs.
3. Direct labor payroll for the month was $25,600 with an average wage of $16 per hour.
4. Actual overhead of $8,860 was incurred and paid in cash.
5. Manufacturing overhead is charged to production at the rate of $5.40 per direct labor hour.
6. Completed jobs costing $60,000 were transferred to Finished Goods.
7. Jobs costing $58,000 were sold on account for $ 73,850. Make the entry to record the revenue from the sale first, followed by the entry to record the cost of the jobs.

Beginning balances as of July 1 were:

Materials Inventory	$1,300
Work-in-Process Inventory	3,400
Finished Goods Inventory	2,640

Required:

1. Prepare the journal entries for the preceding events.

a.	Materials	fill in the blank e36a3efdbfc0032_2
	Accounts Payable		fill in the blank e36a3efdbfc0032_4
b.	Work in Process	fill in the blank e36a3efdbfc0032_6
	Materials		fill in the blank e36a3efdbfc0032_8
c.	Work in Process	fill in the blank e36a3efdbfc0032_10
	Wages Payable		fill in the blank e36a3efdbfc0032_12
d.	Overhead Control	fill in the blank e36a3efdbfc0032_14
	Cash		fill in the blank e36a3efdbfc0032_16
e.	Work in Process	fill in the blank e36a3efdbfc0032_18
	Overhead Control		fill in the blank e36a3efdbfc0032_20
f.	Finished Goods	fill in the blank e36a3efdbfc0032_22
	Work in Process		fill in the blank e36a3efdbfc0032_24
g (1).	Accounts Receivable	fill in the blank e36a3efdbfc0032_26
	Sales Revenue		fill in the blank e36a3efdbfc0032_28
g (2).	Cost of Goods Sold	fill in the blank e36a3efdbfc0032_30
	Finished Goods		fill in the blank e36a3efdbfc0032_32

Feedback

Objective 4 shows an example of journal entries to be made for the month.

2. Calculate the ending balances of:

a. Materials Inventory	$fill in the blank f5e191f9bfa9003_1
b. Work-in-Process Inventory	$fill in the blank f5e191f9bfa9003_2
c. Overhead Control	$fill in the blank f5e191f9bfa9003_3
d. Finished Goods Inventory	$fill in the blank f5e191f9bfa9003_4