Stellar Sound, Inc. which uses a job-order costing system, had two jobs in process at the start of 20x1: job no. 64 ($84,100) and job no. 65 ($53,300). The following information is available:

a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $840,000, and 16,000 hours, respectively.

b. The company worked on four jobs during the first quarter. Direct materials used, direct labor incurred, and machine hours consumed were as follows:

Job No.	Direct Material			Direct Labor			Machine Hours
64	$	21,000		$	35,000			1,200
65					22,000			700
66		44,000			65,000			2,000
67		15,000			8,800			500

c. Manufacturing overhead during the first quarter included charges for depreciation ($33,000), indirect labor ($60,100), indirect materials used ($5,200), and other factory costs ($139,600).

d. Stellar Sound completed job no. 64 and job no. 65. Job no. 65 was sold on account, producing a profit of $34,700 for the firm.

Problem 3-45 Part 2

2. Prepare journal entries as of March 31 to record the following. (Note: Use summary entries where appropriate by combining individual job data.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)

e. The sale of job no. 65.

• Record transfer of job cost from work in progress to finished goods inventory.

Transaction	General Journal	Debit	Credit
d.	Finished-goods inventory	?
	Work-in-process inventory		?