Custom Cabinetry has one job in process (Job 120) as of June 30; at that time,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $3,000, direct labor of $4,000, and applied overhead of $2,800. Custom Cabinetry applies overhead at the rate of 70% of direct labor cost. During July, Job 120 is sold (on account) for $20,000. Job 121 is started and completed, and Job 122 is started and still in process at the end of the month. Custom Cabinetry incurs the following costs during July. July Product Costs Job 121 Job 122 Total Job 120 $2,000 Direct materials $7,000 $4,000 $13,000 Direct labor 1,400 5,000 2,600 9,000 980 3,500 1,820 6,300 Overhead applied (70% of DL) Total $4,380 $15,500 $8,420 $28,300 1. Prepare journal entries for the following in July. a. Direct materials used in production. b. Direct labor used in production (but not yet paid). c. Overhead applied. d. The sale of Job 120. e. Cost of goods sold for Job 120. 2. Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory general ledger accounts. Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $3,000, direct labor of $4,000, and applied overhead of $2,800. Custom Cabinetry applies overhead at the rate of 70% of direct labor cost. During July, Job 120 is sold (on account) for $20,000. Job 121 is started and completed, and Job 122 is started and still in process at the end of the month. Custom Cabinetry incurs the following costs during July. July Product Costs Job 121 Job 122 Total Job 120 $2,000 Direct materials $7,000 $4,000 $13,000 Direct labor 1,400 5,000 2,600 9,000 980 3,500 1,820 6,300 Overhead applied (70% of DL) Total $4,380 $15,500 $8,420 $28,300 1. Prepare journal entries for the following in July. a. Direct materials used in production. b. Direct labor used in production (but not yet paid). c. Overhead applied. d. The sale of Job 120. e. Cost of goods sold for Job 120. 2. Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory general ledger accounts.
Expert Answer:
Answer rating: 100% (QA)
Transaction a General Journal Debit Credit Work in process inventory 13000 13000 Raw material... View the full answer
Related Book For
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
Posted Date:
Students also viewed these accounting questions
-
Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $6,000, direct labor of $2,800, and applied overhead of $2,240. Custom...
-
Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $8,500, direct labor of $4,400, and applied overhead of $3,740. Custom...
-
A partially completed worksheet for Scott Wilson, CPA, for the month ending June 30, 2013, is shown below. INSTRUCTIONS 1. Record the balances as of June 30 in the ledger accounts. 2. Prepare the...
-
In Australia, the banking sector is dominated by four main institutions, the ANZ Banking Group, Commonwealth Bank, National Australia Bank, and Westpac. To maintain a competitive banking market, the...
-
For the countershaft in Prob. 373, p. 138, assume the gear ratio from gear B to its mating gear is 5 to 1. (a) Determine the minimum number of teeth that can be used on gear B without an interference...
-
Two drivers-Walt and Jessie-each drive up to a gas station. Before looking at the price, each places an order. Walt says, "I'd like 10 gallons of gas." Jessie says, "I'd like $10 worth of gas." What...
-
San Joaquin Company began exploration of oil in Texas by paying \($600,000\) for the drilling rights on a large tract of land. The company drilled 10 oil wells on the land. Seven of the wells were...
-
Given this, answer the following questions: 1. Draw a diagram of the process using the format in Exhibit 7.3. 2. Consider a base case where a customer arrives every 40 seconds and the Customer...
-
There are 27,842 undergraduate students enrolled at a certain university. The age distribution
-
1. All players but the retailer should answer this question. What do you think the retailers customer demand pattern looked like? How did your customer orders vary throughout the game? 2. What...
-
Recently, a major clothing line decided to use a Banksy work in its ad campaign. Banksy's response was to ask shoppers to help themselves to the clothing in the store, since the company had not...
-
A force of F = 1 5 0 N is applied at 3 0 o West of North . what is the x component of the force ?
-
How fast would 1 kg bowling ball travel if it had same kinetic energy as that of the elephant provided the mass of the elephant is 600kg and velocity is 10m/s?
-
Select at least two news articles that discuss demand, supply, and equilibrium price of two substitute products, like beef and chicken; butter and margarine. It can be two articles that discuss both...
-
1.Why is leadership often contingent on people and situations? Please be sure to include an example in your response. 2. Define the following terms and or concepts: a. The contingency Approach and...
-
Some people want to devote themselves to philosophical thinking, poetry, art and spiritual development. Are these valid ways to make a living in your society? Are they contributing to society? How...
-
K A study was conducted to estimate hospital costs for accident victims who wore seat belts. Twenty-five randomly selected cases have a distribution that appears to be approximately bell shaped with...
-
Danielle has an insurance policy with a premium of $75 per month. In September she is in an accident and receives a bill worth $2990 for the repair of her own property. Her deductible is $250 and her...
-
Dobbs Company issues 5%, two-year bonds, on December 31, 2015, with a par value of $200,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entries to...
-
Refer to Apples financial statements in Appendix A to answer the following. Required 1. Assume that the amounts reported for inventories and cost of sales reflect items purchased in a form ready for...
-
Fast Yeti Custom Tees, launched by entrepreneurs Reid Lyle, Jordan Roudenis, and Ryan Montgomery, produces apparel products. The company has a diverse product line of T-shirts, hats, and polo shirts....
-
Santiago, Inc., began operations as an importer of fine Chilean wine the United States. Sales and purchase information is provided below. Santiago, Inc., uses the LIFO method of inventory valuation....
-
Presented below are the financial statements of two companies that are identical in every respect except the method of valuing their inventories. The method of valuing inventory is LIFO for the LIFO...
-
Costco Wholesale Corporation operates membership warehouses. As of August 30, 2015 Costco operated 686 warehouses, with 480 in the United States. In addition, the store sells merchandise through its...
Study smarter with the SolutionInn App