June production generated the following activity in Car Chassis Company’s Work-in-Process Inventory account:
June 1 balance................$ 38,000
Direct materials used............. 43,000
Direct labor assigned to jobs.......... 42,000
Manufacturing overhead allocated to jobs...... 29,400
Additionally, Car Chassis has completed Jobs 142 and 143, with total costs of $46,000 and $35,000, respectively.
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 $47,000. Also, prepare the journal entry to record Cost of Goods Sold for Job 143.
4. What is the gross profit on Job 143?