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...
-
Telfer, Inc. reported net income of $2.8 million in 2015. Depreciation for the year was $160,000, accounts receivable decreased $350,000, and accounts payable decreased $280,000. Compute net cash...
-
It often happens that a substance possessing a smectic liquid crystalline phase just above the melting point passes into a nematic liquid crystalline phase at a higher temperature. Account for this...
-
What are the differences between a release and a covenant not to sue?
-
The comparative balance sheets for 2011 and 2010 are given below for Surmise Company. Net income for 2011 was $50 million. Required: Prepare the statement of cash flows of Surmise Company for the...
-
B) Suppose your friend just inherited a large sum of money. Rather thank making equal annual payments, she decided to make one lump sum deposit today to cover her retirement needs. What amount does...
-
The figure below shows an initially stationary block of mass m on a floor. A force of magnitude F = 0.550mg is then applied at upward angle ? = 24. (a) What is the magnitude of the acceleration of...
-
A possible logarithmic model for the data is y=2.6+2.2log x . Use this model to determine the y-value when x = 1.25. Round your answer to the tenths place.
-
a. Using a medical group practice to illustrate your answer, explain the difference between a price setter and a price taker. b. Can most providers be classified strictly as either a price setter or...
-
Why is it difficult to puncture a market bubble?
-
What are the differences among the three forms of the EMH?
-
How can a firms managers influence market risk as reflected in beta?
-
What is anchoring bias? What is herding behavior? How can these contribute to market bubbles?
-
RUI limited issued bonds at R 1 0 0 0 par 5 years ago. With 1 2 % coupon rate, paid semi - annually, the bond will mature ten years from now. Calculate the current price of the bond if the market...
-
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....
-
Chic Interiors reported the following transactions in November 2020): {Requirements} 1. Record the transactions for the month of November assuming the periodic inventory system is used. 2. Prepare a...
-
Assume a Cross Country Sports outlet store began March 2020 with 49 pairs of running shoes that cost the store \(\$ 35\) each. The sale price of these shoes was \(\$ 70\). During March, the store...
-
Italian Leather Goods Inc. began 2020 with an inventory of 50,000 units that cost \(\$ 1,500,000\). During the year, the store purchased merchandise on account as follows: Cash payments on account...
Study smarter with the SolutionInn App