Custom Cabinetry has one job in process (Job 120) as of June 30; at that time,...
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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 Cabinetry applies overhead at the rate of 80% of direct labor cost. During July, Job 120 is sold (on account) for $22,000. Job 121 is started and completed, and Job 122 is started and still in process at the end of July. Custom Cabinetry incurs the following costs during July. July Product Costs Job 120 Job 121 Job 122 Direct materials $1,000 $6,000 $2,500 Direct labor 2,200 3,700 2,100 Overhead applied (80% of DL) 1,760 2,960 1,680 Total $4,960 $12,660 $6,280 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). General Journal a) Work in process inventory Raw materials inventory c. Overhead applied. d. The sale of Job 120. e. Cost of goods sold for Job 120. Debit Credit 9,500 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 Cabinetry applies overhead at the rate of 80% of direct labor cost. During July, Job 120 is sold (on account) for $22,000. Job 121 is started and completed, and Job 122 is started and still in process at the end of July. Custom Cabinetry incurs the following costs during July. July Product Costs Job 120 Job 121 Job 122 Direct materials $1,000 $6,000 $2,500 Direct labor 2,200 3,700 2,100 Overhead applied (80% of DL) 1,760 2,960 1,680 Total $4,960 $12,660 $6,280 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). General Journal a) Work in process inventory Raw materials inventory c. Overhead applied. d. The sale of Job 120. e. Cost of goods sold for Job 120. Debit Credit 9,500
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a Direct materials used in production DateAccount Titles and ExplanationDebitCredit JulyWork in Proc... View the full answer
Related Book For
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
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