The balance in Work in Process Inventory on February 1 was $16,800, which consis

Question

The balance in Work in Process Inventory on February 1 was $16,800, which consisted of $11,200 for Job #217 and $5,600 for Job #218. The February beginning balance in Direct Material Inventory was $44,600. Actual overhead is applied to jobs at a rate of $4.95 per dollar of direct labor cost. Job #217 was completed and transferred to Finished Goods Inventory during February. Job #217 was delivered to the customer at the agreed-upon price of cost plus 35 percent.

a. Prepare journal entries to record the preceding information.

For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0

b. Determine the February ending balance in WIP Inventory.
$ // // //

How much of this balance relates to Job #218?
$ // //

Explanation / Answer

Raw Material Inventory Raw Material Inventory Raw Material Inventory Raw Material Inventory Raw Material Inventory Raw Material Inventory Raw Material Inventory Raw Material Inventory Raw Material Inventory Raw Material Inventory Raw Material Inventory Raw Material Inventory 76,000.00 Accounts Payable 76,000.00 To record the purchase of raw materials on account. Work in Process 105,600.00 Raw Material Inventory 105,600.00 To record materials requisitioned for specific jobs. Factory Labor Cost 44,000.00 Factory Wages Payable 44,000.00 To record direct labor payroll for production employees Manufacturing OH 220,000.00 Cash 220,000.00 To record the incurrence of actual overhead costs Work in Process 209,000.00 Manufacturing OH 209,000.00 To apply overhead to specific jobs. Finished Goods Inventory 117,880.00 Work in Process 117,880.00 To transfer job 278finished goods inventory Accounts Receivable 159,138.00 Sales 159,138.00 To record the sale of goods for Job #217. Cost of Goods Sold 117,880.00 Finished Goods Inventory 117,880.00 Cost of job 217 : Opening WIP : Material 11,200.00 Add : Material Added 44,800.00 Labor added Labor 10,400.00 Manufacturing OH applied 51,480.00 Cost of Job 217 117,880.00

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.