Ehrling Brothers Company makes jobs to customer order. During the month of July, the following occurred: Materials were purchased on account for $45,760. Materials totaling $40,880 were requisitioned for use in producing various jobs. Direct labor payroll for the month was $22,400 with an average wage of $14 per hour. Actual overhead of $8,850 was incurred and paid in cash. Manufacturing overhead is charged to production at the rate of $5.40 per direct labor hour. Completed jobs costing $59,000 were transferred to Finished Goods. Jobs costing $58,000 were sold on account for $ 73,750. Make the entry to record the revenue from the sale

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Ehrling Brothers Company makes jobs to customer order. During the month of July, the following occurred:

  1. Materials were purchased on account for $45,760.
  2. Materials totaling $40,880 were requisitioned for use in producing various jobs.
  3. Direct labor payroll for the month was $22,400 with an average wage of $14 per hour.
  4. Actual overhead of $8,850 was incurred and paid in cash.
  5. Manufacturing overhead is charged to production at the rate of $5.40 per direct labor hour.
  6. Completed jobs costing $59,000 were transferred to Finished Goods.
  7. Jobs costing $58,000 were sold on account for $ 73,750. Make the entry to record the revenue from the sale first, followed by the entry to record the cost of the jobs.

Beginning balances as of July 1 were:

Materials Inventory $1,300
Work-in-Process Inventory 3,400
Finished Goods Inventory 2,640

Required:

Question Content Area

1. Prepare the journal entries for the preceding events.

a.
 
   
 
 
   
b.
 
   
 
 
   
c.
 
   
 
 
   
d.
 
   
 
 
   
e.
 
   
 
 
   
f.
 
   
 
 
   
g (1).
 
   
 
 
   
g (2).
 
   
 
 
   
 

Question Content Area

2. Calculate the ending balances of:

a.  Materials Inventory $fill in the blank ea81b3ffffbb05b_1
b.  Work-in-Process Inventory $fill in the blank ea81b3ffffbb05b_2
c.  Overhead Control $fill in the blank ea81b3ffffbb05b_3
d.  Finished Goods Inventory $fill in the blank ea81b3ffffbb05b_4
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