1. what is the cost of good sold? 2. what is yhe journal entry to record the com

Question

1. what is the cost of good sold?
2. what is yhe journal entry to record the completion of jobs 102 and 103?
3. what is the journal entry to record the sale of jobs 102 and 103 on account for $295000?

Chapters 56 Lamour Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year Activity Cost Driver number of setups number of parts Amount of driver $240,000 6,000 purchasing ther overhead 160,000 A 300,000 direct labor hours The following information about the jobs was given for April. 0.0 ob 101 Job 102 | Job 103 Job 104 54,00037,900 25,00011,000 1030 200 $64,900 30,500 Balance 4/1 direct materials 80,000 38,500 43,0 irect labor umber of setups umber of parts rect labor hours 30080 400 500 5,000-2,400 (3,200)| 1,200- By April 30, Jobs 102 and 103 were completed and sold. The remaining jobs were still in process.

Explanation / Answer

Activity Rate ACTIVITIES COST COST DRIVER ANNUAL COST DRIVER ACTIVITY RATE (Total Cost/Annual Cost driver) Setups 240,000 Number of Setups 6,000 setups $40 per setup Purchasing 160,000 Number of parts 20,000 parts $8.00 per part Other Overheads 300,000 Direct Labour hours 80,000 DLH $3.75 per DLH JOB 101 JOB 102 Job 103 Job 104 Opening Balance on April 1 $64,900.00 40,770 30,500 Add: Current cost for the month' Direct Material 54,000 37,900 25,000 11,000 Direct Labour 80,000 38,500 43,000 21,000 Activity Cost: Setup(@40 per setup) 1600 400 1,200 8000 (40 setp*40) (10 setup@40) (30 setup@40) (200 setup@40) Purchasing(@8 per setup) 2400 640 3,200 4000 (300 part@8) (80 parts@8) (400 parts@8) (500 parts@8) Other Overheads(@3.75 per DLH) 18750 9000 19500 4500 (5000 DLH@3.75) (2400 DLH@3.75) (5200dlh*3.75) (1200 DLH@3.75) Total Cost of Jobs $221,650.00 $127,210.00 $122,400.00 $48,500.00 Req 1: Cost of Goods Sold: Jobs Completed and Sold (Job no. 102 and 103) Cost of Job no. 102 127210 Cost of Job no. 103 122400 Total cost of goods sold 249610 Req 2: JOURNAL ENTRY Accounts title and Explanation Dr. in $ Cr in $ For completion of Jobs Finished Goods Inventory Control Dr. 249,610 Work in Progress Inventory Control Cr. 249,610 Req 3: JOURNAL ENTRY Accounts title and Explanation Dr. in $ Cr in $ For Recording sales on account Accounts receivable Dr. 295,000 Sales Revenue Cr. 295,000 For recording cost of goods sold: Cost of Goods Sold Dr. 249,610 Finished Goods Inventory Control Cr. 249,610

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