Question

E2-16 (Algo) Preparing Journal Entries [LO 2-S1) Aquazona Pool Company is a custom pool builder. The company recently completed a pool for the Drayna family (Job 1324) as summarized on the incomplete job cost sheet below.. Assume the company bids its pools at total manufacturing cost plus an additional 20 percent. Job Cost Sheet Job Number: 1324 Date Started: 7/8/2018 Date Completed: 8/30/2018 Description: Drayna Pool Applied Direct Materials Direct Labor Manufacturing Overhead Reg. No Amount Ticket Hours Amount Hours Rate Amount MR 3345 $1,460 TT 335 25 $495.00 MR 3372 930 TT 340 39 772.20 MR 4251 1,170 TT 385 23 455.40 MR 4263 1,670 TT 385 30 594.00 MR 5236 2,080 TT 425 30 594.00 $7,310 147 $2,910.60 ? 2 2 Cost Summary $7,310.00 2,910.60 Direct Materials Cost Direct Labor Cost Applied Manufacturing Overhead Total Cost The company applies overhead to jobs at a rate of $9.90 per direct labor hour. Required: Prepare journal entries to record cost of goods sold and sales revenue for Job 1324. Assume the total cost of Job 1324 is currently in the Finished Goods Inventory Account and that the Draynas paid for the pool with cash. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to 2 decimal places.)

Answer 1

Credit Transaction General Journal (a) Cost of goods sold Finished goods inventory Debit $ 11,675.90 (7310+2910.6)+(147*9.9) $ 11,675.90 (To Record the cost of goods sold) (b) Cash Sales $ 14,011.08 11675.9*120% $ 14,011.08 (To Record sale of Job 1324) Note : Please comment down for any further clarifications