September production generated the following activity in Digital Connection€™s work in process inventory:

Production was completed in September, but is not recorded yet; it consists of Jobs B-78 and G-65, with total costs of $41,000 and $37,000, respectively.
Requirements
1. Compute the balance of work in process inventory at September 30.
2. Prepare the journal entry for the production completed in September.
3. Prepare the journal entry to record the sale (on credit) of Job G-65 for $45,000. Assume a perpetual inventory system.
4. What is the gross profit of Job G-65? What other costs must this gross profit cover?

Transcribed Image Text:

Work in Process Inventory Sep 1 Bal Direct materials used 29,000 Direct labour assigned 16,000 to jobs 32,000 Manufacturing overhead allocated to jobs 12,000