Requirement 2. A T-account for Work-in-Process Inventory has been opened for you

Question

Requirement 2. A T-account for Work-in-Process Inventory has been opened for you. Enter the beginning balance "Beg. Bal." on the first line of the T-account. Post the June activity, including the journal entry made in Requirement 1, using the appropriate descriptions as posting references. Compute the ending balance "Bal." in the Work-in-Process Inventory account on June 30. (Abbreviation used: MOH-manufacturing overhead.) Work-in-Process Inventory Beg. Bal Direct materials used Labor incurred MOH allocated to jobs Bal 552 5554 |Beg. Bal. Jobs 142 and 143 completed Bal

Explanation / Answer

1. Journal entry: Debit $ Credit $ Debit FG Inventory 72000 Credit WIP 72000 (job 142 $35000 & job 143 $37000) 2. T-account for WIP Inventory: Debit Amount $ Credit Amount $ OB 30000 FG Inventory 72000 DM used 44000 CB 46800 DL 32000 M o/h Applied 12800 Total 118800 Total 118800 3. Journal Entry to record sale of Job 143 : Debit AR 54000 Credit Sales revenue 54000 Debit COGS 37000 Credit FG Inventory 37000 4. Gross profit on Job 143 = 54000 - 37000 = $17000

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