Ehrling Brothers Company makes jobs to customer order. During the month of July, the following occurred:

Materials were purchased on account for $45,670.

Materials totaling $40,990 were requisitioned for use in producing various jobs.

Direct labor payroll for the month was $22,400 with an average wage of $14 per hour.

Actual overhead of $9,020 was incurred and paid in cash.

Manufacturing overhead is charged to production at the rate of $5.50 per direct labor hour.

Completed jobs costing $58,000 were transferred to Finished Goods.

Jobs costing $59,000 were sold on account for $73,750. Make the entry to record the revenue from the sale first, followed by the entry to record the cost of the jobs.

Beginning balances as of July 1 were:

Materials Inventory	$1,200
Work-in-Process Inventory	3,400
Finished Goods Inventory	2,630

Required:

1. Prepare the journal entries for the preceding events.

2. Calculate the ending balances of:

Answer rating: 100% (QA)

a Materials inventory Accounts payable b Workinprocess invent... View the full answer