Question

[The following information applies to the questions displayed below.) Finlon Upholstery, Inc. uses a job-order costing system to accumulate manufacturing costs. The company's work-in-process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor hours, multiplied by the budgeted direct-labor rate.) Budgeted totals for 20x2 for direct labor and manufacturing overhead are $4,200,000 and $5,460,000, respectively. Actual results for the year follow. Direct material used Direct labor Indirect material used Indirect labor Factory depreciation Factory insurance Factory utilities Selling and administrative expenses Total $ 5,500,000 4,350,000 64,000 2,860,000 1,740,000 58,000 830,000 2,160,000 $ 17,562,000 Job no. 2077 was completed in January 20x2; there was no work in process at year-end. All jobs produced during 20x2 were sold with the exception of job no. 2143, which contained direct-material costs of $155,000 and direct-labor charges of $85,000. The company charges any under-or overapplied overhead to Cost of Goods Sold.

Can someone help guide me to filling in this journal entry?

Answer 1

	General Journal	Debit	Credit
1	Finished goods inventory	15661800
	Work in Process inventory		15661800

Workings:
Predetermined overhead rate	130%	=5460000/4200000
Beginning work in process	156800
Direct materials used	5500000
Direct labor cost	4350000
Manufacturing overhead applied	5655000	=4350000*130%
Total cost of goods completed	15661800