Question

Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $7,700, direct labor of $3,200, and applied overhead of $2,880. Custom Cabinetry applies overhead at the rate of 90% of direct labor cost. During July, Job 120 is sold (on account) for $29,500, Job 121 is started and completed, and Job 122 is started and still in process at the end of the month. Custom Cabinetry incurs the following costs during July. July Product Costs Direct materials Direct labor Overhead applied Job 120 $2,500 3,600 Job 121 $7,900 4,000 Job 122 $3,000 3,200 Total $13,400 10,800 1. Prepare journal entries for the following in July. a. Direct materials used in production. b. Direct labor used in production. c. Overhead applied. d. The sale of Job 120. e. Cost of goods sold for Job 120. 2. Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory accounts. (Assume there are no jobs in Finished Goods Inventory as of June 30.) Complete this question by entering your answers in the tabs below.

I need all of the journal entries and the second part. Thanks

Answer 1

	Job sheet			job 120	job121	job122	Total
	Beginning bal
	Direct materials			7,700			7,700
	Direct labor			3,200			3,200
	applied overhead			2,880			2,880
	Total beginning bal			13,780			13,780
	cost added during the year
	Direct materials			2,500	7,900	3,000	13,400
	Direct labor			3,600	4,000	3,200	10,800
	applied overhead			3240	3600	2880	9720
	total cost added during the year			9,340	15500	9080	33,920
	total cost of job			23,120	15500	9080	47,700
1)	Journal entries
	No.	General Journal				Debit	Credit
	a.	Work in process inventory				13,400
		Raw materials inventory					13,400
	b.	Work in process inventory				10,800
		factory wages payable					10,800
	c.	work in process inventory				9,720
		Manufacturing overhead					9,720
	d.	Account receivable				29,500
		Sales					29,500
	e.	Cost of goods sold				23,120
		Finished goods inventory					23,120
2)		Work in process inventory
	Beg bal	13,780	Finished	38,620
	a.	13,400	goods
	b.	10,800
	c.	9,720
	End bal	9,080
		Finished goods inventory
	Beg.bal	0	COGS	23,120
	WIP	38,620
	End bal	15,500
				wip	finished
	Job#			122	121
	Direct materials			3,000	7,900
	direct labor			3,200	4,000
	overhead			2880	3600
	total			9,080	15,500