Job Order Accounting Radical Jets produces and sells custom built jets for corpo
ID: 2579137 • Letter: J
Question
Job Order Accounting Radical Jets produces and sells custom built jets for corporate and personal use. The following information was found in the general ledger Account Materials inventory Goods in process Finished Goods Beginning Balance $50,000 $200,000 $325,000 Current jobs: Direct Materials Direct Labor Total Costs Factory Overhead Job No 2145 2146 2147 2148 2150 $9,000 $8,000 $7,500 $6,000 $5,000 $4,300 $12,000 $10,000 $9,000 $7,500 $7,000 3,600 Indirect Totals Factory overhead is applied based on direct labor costs. The company estimates that factory overhead is $136,500 Required: 1. Record the entry for the purchase of 34,000 in materials on account. 2. Record the entry for the requisition of materials 3. Record the entry for labor 4. Record the application of factory overhead 5. Record the completion of jobs: 2145, 2146, and 2147. 6. Record the sale of job 2145 for $50,000 7. What are the ending balances for the three inventory accounts?Explanation / Answer
Solution:
1
Dr. Raw materials
$34,000
Cr. Accounts payable
$34,000
2
Dr. Work in prcess
$39,800
Cr. Raw materials
$39,800
3
Dr. Work in process
$49,100
Cr. Salaries and wages payable
$49,100
4
Dr. Work in procss
$136,500
Cr. Manufacturing overheads
$136,500
5
Dr. Finished goods
$55,500
Cr. Work in process
$55,500
6
Dr. Cost of goods sold
$21,000
Cr. Finished gods
$21,000
Working
7
Materials
$35,200
50000 + 34000 - 39800-9000
Goods in process
$369,900
200000 +39800 + 49100+136500 -55500
Finished goods
$359,500
325000 + 55500 - 21000
1
Dr. Raw materials
$34,000
Cr. Accounts payable
$34,000
2
Dr. Work in prcess
$39,800
Cr. Raw materials
$39,800
3
Dr. Work in process
$49,100
Cr. Salaries and wages payable
$49,100
4
Dr. Work in procss
$136,500
Cr. Manufacturing overheads
$136,500
5
Dr. Finished goods
$55,500
Cr. Work in process
$55,500
6
Dr. Cost of goods sold
$21,000
Cr. Finished gods
$21,000
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