June

production generated the following activity in

Four Wheel

Chassis Company's Work-in-Process Inventory account:

1(Click

the icon to view the activity.)Additionally,

Four Wheel

has completed Jobs 142 and 143, with total costs of

$38,000

and

$45,000,

respectively.Read the

requirements2.

Requirement 1. Prepare the journal entry for production completed in

June.

(Prepare a single journal entry for this event. Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Date			Accounts and Explanation	Debit	Credit
June			(1)
			(2)
			(3)
			(4)
			(5)

Requirement 2. A T-account for Work-in-Process Inventory has been opened for you. Enter the beginning balance "Beg. Bal." on the first line of the T-account. Post the

June

activity, including the journal entry made in Requirement 1, using the appropriate descriptions as posting references. Compute the ending balance "Bal." in the Work-in-Process Inventory account on

June

30.

(Abbreviation used: MOH = manufacturing overhead.)

Work-in-Process Inventory
(6)			(7)
(8)			(9)
(10)			(11)
(12)			(13)
(14)			(15)

Requirement 3. Prepare the journal entry to record the sale on account of Job 143 for

$58,000.

Also, prepare the journal entry to record Cost of Goods Sold for Job 143. (Prepare a single journal entry for this event. Select the explanation on the last line of the journal entry table.)

Begin by preparing the entry to record the sale on account. Do not record the cost of the sale with this entry. We will do that separately in the following step.

Date			Accounts and Explanation	Debit	Credit
June			(16)
			(17)
			(18)
			(19)
			(20)

Now prepare the journal entry to record Cost of Goods Sold for Job 143.

Date			Accounts and Explanation	Debit	Credit
June			(21)
			(22)
			(23)
			(24)
			(25)

Requirement 4. What is the gross profit on Job 143?

The gross profit on Job 143 is

.

1: Data Table

June 1 balance	$22,000
Direct materials used	28,000
Direct labor assigned to jobs	44,000
Manufacturing overhead allocated to jobs	17,600

2: Requirements

1.	Prepare the journal entry for production completed in June.
2.	Open a T-account for Work-in-Process Inventory. Post the journal entry made in Requirement 1. Compute the ending balance in the Work-in-Process Inventory account on June 30.
3.	Prepare the journal entry to record the sale on account of Job 143 for $58,000. Also, prepare the journal entry to record Cost of Goods Sold for Job 143.
4.	What is the gross profit on Job 143?

(1)

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Raw Materials Inventory

Sales Revenue

Wages Payable

Work-in-Process Inventory

(2)

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Raw Materials Inventory

Sales Revenue

Wages Payable

Work-in-Process Inventory

(3)

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Raw Materials Inventory

Sales Revenue

Wages Payable

Work-in-Process Inventory

(4)

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Raw Materials Inventory

Sales Revenue

Wages Payable

Work-in-Process Inventory

(5)

Adjusted MOH for underallocated overhead.

Allocated overhead to WIP.

Completed jobs, costs assigned to FG.

Incurred labor, direct labor assigned to WIP, indirect labor accumulated in MOH.

Incurred overhead, costs accumulated in MOH.

Purchased materials, accumulated in RM.

Sold jobs, costs assigned to COGS.

Sold jobs on account.

Used materials, direct materials assigned to WIP, indirect materials accumulated in MOH.

(6)

Beg. Bal.

(7)

Beg. Bal.

(8)

Direct labor assigned to jobs

Direct materials purchased

Direct materials used

Jobs 142 and 143 completed

Labor incurred

MOH allocated to jobs

(9)

Direct labor assigned to jobs

Direct materials purchased

Direct materials used

Jobs 142 and 143 completed

Labor incurred

MOH allocated to jobs

(10)

Direct labor assigned to jobs

Direct materials purchased

Direct materials used

Jobs 142 and 143 completed

Labor incurred

MOH allocated to jobs

(11)

Direct labor assigned to jobs

Direct materials purchased

Direct materials used

Jobs 142 and 143 completed

Labor incurred

MOH allocated to jobs

(12)

Direct labor assigned to jobs

Direct materials purchased

Direct materials used

Jobs 142 and 143 completed

Labor incurred

MOH allocated to jobs

(13)

Direct labor assigned to jobs

Direct materials purchased

Direct materials used

Jobs 142 and 143 completed

Labor incurred

MOH allocated to jobs

(14)

Bal.

(15)

Bal.

(16)

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Raw Materials Inventory

Sales Revenue

Wages Payable

Work-in-Process Inventory

(17)

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Raw Materials Inventory

Sales Revenue

Wages Payable

Work-in-Process Inventory

(18)

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Raw Materials Inventory

Sales Revenue

Wages Payable

Work-in-Process Inventory

(19)

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Raw Materials Inventory

Sales Revenue

Wages Payable

Work-in-Process Inventory

(20)

Adjusted MOH for underallocated overhead.

Allocated overhead to WIP.

Completed jobs, costs assigned to FG.

Incurred labor, direct labor assigned to WIP, indirect labor accumulated in MOH.

Incurred overhead, costs accumulated in MOH.

Purchased materials, accumulated in RM.

Sold jobs, costs assigned to COGS.

Sold jobs on account.

Used materials, direct materials assigned to WIP, indirect materials accumulated in MOH.

(21)

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Raw Materials Inventory

Sales Revenue

Wages Payable

Work-in-Process Inventory

(22)

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Raw Materials Inventory

Sales Revenue

Wages Payable

Work-in-Process Inventory

(23)

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Raw Materials Inventory

Sales Revenue

Wages Payable

Work-in-Process Inventory

(24)

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Raw Materials Inventory

Sales Revenue

Wages Payable

Work-in-Process Inventory

(25)

Adjusted MOH for underallocated overhead.

Allocated overhead to WIP.

Completed jobs, costs assigned to FG.

Incurred labor, direct labor assigned to WIP, indirect labor accumulated in MOH.

Incurred overhead, costs accumulated in MOH.

Purchased materials, accumulated in RM.

Sold jobs, costs assigned to COGS.

Sold jobs on account.

Used materials, direct materials assigned to WIP, indirect materials accumulated in MOH.