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The following activities took place in the work in process inventory account dur

ID: 2388519 • Letter: T

Question

The following activities took place in the work in process inventory account during April:

Beginning balance $ 15,000
Direct materials used 120,000

Total manufacturing labor incurred in April was $162,500, 80% of this amount represented direct labor. The predetermined manufacturing overhead rate is 120% of direct labor cost. Actual manufacturing overhead costs for April amounted to $150,000. Two jobs were completed with total costs of $120,000 and $85,000, respectively. They were sold on account for $265,000 and $155,000, respectively.

a) Compute the balance in work in process inventory on April 30.
b) Record the journal entry for direct materials used in April.
c) Record the journal entry for total manufacturing labor incurred in April.
d) Record the journal entry to allocate manufacturing labor to the appropriate accounts.
e) Record the journal entry for allocated manufacturing overhead for April.
f) Record the entry to move the completed jobs into finished goods inventory.
g) Record the entry to sell the two completed jobs on account.

Explanation / Answer

b) Jobs account dr. 130000
to direct material account 130000

c) jobs account dr. 150000
to ovrehead account 150000

e)Jobs account dr 162000
To manufacture overhead account 162000

f)finish goods 1 account dr 120000
To Jobs account 120000

finished goods 2 account dr 85000
To jobs account 85000

g) Cash account dr 420000
To finished goods 1 account 420000
to finish goods 2 account 420000

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