Ruggio, Inc. has one job in process $($Job $100)$ as of June $30$th; at that time its job cost sheet reports direct materials of $$22,000,$ direct labor of $$12,000,$ and applied overhead of $$16,500($$$50,500$ in work in process inventory at June $30$th$).$ Ruggio applies overhead at $75\%$ of direct material cost. During July, Job $100$ is completed and sold on credit for $$100,000,$ Job $101$ is started and completed, and Job $102$ is started and still in work in process at the end of July. Ruggio incurs the following costs during July:

Job $100$ Job $101$ Job $102$

Direct Materials Used $8,00065,00025,000$

Direct Labor Used $4,00038,00013,000$

"REQUIREMENTS:

A$.$ Prepare the journal entries for the following July transactions and events, a through g:

a$.$ Direct materials used

b$.$ Direct labor used $($use factory wages payable$)$

c$.$ Overhead applied

d$.$ Transfer of Job $100$ from WIP to finished goods

e$.$ Transfer of Job $101$ from WIP to finished goods

f$.$ Sale of Job $100$

g$.$ Cost of goods sold for Job $100"$

B$.$ Compute the July $31$st balances of the Work in Process Inventory and the Finished Goods Inventory accounts. Assume Finished Goods Inventory has a $$0$ balance at June $30$th$.$ Show all work.SOLUTION $1$

Job $100$

Job $101$

Job $102$

Totals

Direct Materials Used

Direct Labor Used

Overhead applied

Totals

A$-$ JOURNAL ENTRIES

B $-$ ENDING WIP & FG INVENTORY

WIP Inventory

Finished Goods Inventory