In March, Stinson Company completes its only two jobs in process, Jobs 10 and 11. Job 10 cost $20,000 and Job 11 $30,000. On March 31, Job 10 is sold. Using the format shown in Illustration 12.24, record the completion of the two jobs and the sale of Job 10. Record service salaries and wages and operating overhead.

Data From Illustration 12.24

Transcribed Image Text:

Flow of Costs WORK IN FINISHED PROCESS GOODS COST OF MANUFACTURING COSTS INVENTORY INVENTORY GOODS SOLD Raw Factory Labor Materials Manuf. Overhead Inventory Accumulation Assignment (1) (2) (3) +$42,000 +$32,000 1. Purchase raw 4. Raw materials are +$4,800 +2,000 materials used 5. Factory labor is used 6. Overhead is applied 7. Completed goods are recognized 8. Cost of goods sold is recognized (3) (3) (3) 2. Incur factory labor +2,600 3. Incur +3,000 manufacturing overhead (3) (4) (4) (5) +1,400 -24,000 +$24,000 -6,000 +6,000 -28,000 +28,000 (5) (6) -4,000 +4,000 -22,400 +22,400 +$39,000 -39,000 (7) -39,000 (8) +$39,000 Ending balance $12,000 $ $1,400 $35,400 $ $39,000