Shamrock Industries uses process costing. All of the company's manufacturing activities take place in a single processing
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Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 90,000
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000
Manufacturing overhead applied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
Total costs to account for in June . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $160,000
The amounts of work in process at the beginning and end of the month were immaterial and assigned no dollar value. During June, 20,000 units were completed, of which 16,000 were sold on account at $20 per unit.
a. Prepare a journal entry to summarize the total manufacturing costs applied to production in June.
b. Prepare the journal entry to transfer completed units from work in process to the finished goods warehouse in June.
c. Prepare the journal entries to record the sale of 16,000 units manufactured during the period and the related cost of goods sold.
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Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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