Journal Entries, T-Accounts Ehrling Brothers Company makes jobs to customer order. During the month of July, the following occurred: a. Materials were purchased on account for $45,620. b. Materials totaling $40,980 were requisitioned for use in producing various jobs. C. Direct labor payroll for the month was $25,600 with an average wage of $15 per hour. d. Actual overhead of $8,860 was incurred and paid in cash. e. Manufacturing overhead is charged to production at the rate of $5.40 per direct labor hour. f. Completed jobs costing $59,000 were transferred to Finished Goods. g. Jobs costing $59,000 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 3,400 Work-in-Process Inventory Finished Goods Inventory 2,640 Required: 1. Prepare the journal entries for the preceding events. Materials 45,620 a. Accounts Payable 45,620 b. Work in Process 40,980 b. Work in Process 40,980 Materials 40,980 Work in Process 25,600 Wages Payable 25,600 d. Overhead Control 8,860 Cash 8,860 e. 8,640 Work in Process Overhead Control 8,640 f. 59,000 Finished Goods Work in Process 59,000 9 (1). Accounts Receivable 73,850 Sales Revenue 73,850 9 (2). Cost of Goods Sold 59,000 73,850 9 (1). Accounts Receivable Sales Revenue 73,850 9 (2). Cost of Goods Sold 59,000 Finished Goods 59,000 Feedback Check My Work Objective 4 shows an example of journal entries to be made for the month. 2. Calculate the ending balances of: a. Materials Inventory b. Work-in-Process Inventory llll C. Overhead Control d. Finished Goods Inventory