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 $45,620.
2. Materials totaling $40,880 were requisitioned for use in producing various jobs.
3. Direct labor payroll for the month was $22,400 with an average wage of $14 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 $59,000 were transferred to Finished Goods.
7. Jobs costing $58,000 were sold on account for $ 73,750. Make the entry to record the revenue from the sale first, followed by the entry to record the cost of the jobs.

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 $40,880 were requisitioned for use in producing various jobs. c. Direct labor payroll for the month was $22,400 with an average wage of $14 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 $58,000 were sold on account for $ 73,750. 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 $1,100 Work-in-Process Inventory 3,400 Finished Goods Inventory 2,620 Required: 1. Prepare the journal entries for the preceding events. a. Materials 45,620 Accounts Payable 45,620 Work in Process 40,880 Materiale Materials Work in Process Wages Payable Overhead Control Cash Work in Process Overhead Control Finished Goods Work in Process Accounts Receivable V 73,750 Sales Revenue a (2) Cost of Goods Sold 58,000 Finished Goods 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 $ c. Overhead Control d. Finished Goods Inventory $ Feedback Check My Work The use of T-accounts would provide a good picture of balances and transactions for the month ending and give you a final balance