Question

Custom Cabinetry has one job in process (Job 120) as of June 30; at that time,...

Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $7,000, direct labor of $4,200, and applied overhead of $3,570. Custom Cabinetry applies overhead at the rate of 85% of direct labor cost. During July, Job 120 is sold (on account) for $31,000, 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 Job 120 Job 121 Job 122 Total
Direct materials $ 2,800 $ 7,800 $ 2,600 $ 13,200
Direct labor 3,400 4,600 3,000 11,000
Overhead applied ? ? ? ?


1.
Prepare journal entries for the following in July.

  1. Direct materials used in production.
  2. Direct labor used in production.
  3. Overhead applied.
  4. The sale of Job 120.
  5. 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.)

Work in Process Finished Goods
Job #
Direct materials
Direct labor
Overhead
Total cost

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
As of the end of June, the job cost sheets at Racing Wheels, Inc., show the...
As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs. Job 102 Job 103 Job 104 Direct materials $ 31,000 $ 71,000 $ 47,000 Direct labor 10,000 28,300 43,000 Overhead applied 4,600 13,018 19,780 Job 102 was started in production in May, and the following costs were assigned to it in May: direct materials, $14,000; direct labor, $3,900; and overhead, $1,794. Jobs 103 and 104 were...
Exercise 2-3 Analysis of cost flows LO C2 As of the end of June, the job...
Exercise 2-3 Analysis of cost flows LO C2 As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs. Job 102 Job 103 Job 104 Direct materials $ 25,000 $ 48,000 $ 64,000 Direct labor 13,000 26,900 39,000 Overhead applied 4,810 9,953 14,430 Job 102 was started in production in May and the following costs were assigned to it in May: direct materials, $12,000; direct labor, $3,800;...
A makes custom furniture and uses a job-order-cost system. The company always writes off under/over applied...
A makes custom furniture and uses a job-order-cost system. The company always writes off under/over applied overhead to cost of goods sold. The following data pertains to the first quarter of 2020: Beginning direct-materials inventory $26,000 Beginning WIP inventory 64,000   Beginning finished-goods inventory 58,000 Direct materials purchased $148,000 Direct materials requisitioned 82,000 Direct-labor cost incurred 120,000 Factory overhead incurred 146,000 Cost of goods completed (COG manufactured) 292,000 Cost of goods sold (before adjustment for under or over-applied overhead) 256,000 Manufacturing...
Compounding Pharmacy Equipment and Supplies Inc., makes specialized medicine dispensers for intensive care units. The company...
Compounding Pharmacy Equipment and Supplies Inc., makes specialized medicine dispensers for intensive care units. The company had only one job in process during July: Job HOSP52 and had no finished goods inventory on July 1. Job HOSP52 was started in June and finished during July. Data concerning that job appear below: Job HOSP52 Beginning balance $9,840 Charged to the job during July:      Direct materials $12,200      Direct labor $ 4,300       Manufacturing overhead - actual $ 6,550       Manufacturing...
Morrow Corporation had only one job in process during May—Job X32Z—and had no finished goods inventory...
Morrow Corporation had only one job in process during May—Job X32Z—and had no finished goods inventory on May 1. Job X32Z was started in April and finished during May. Data concerning that job appear below:         Job X32Z Beginning balance $ 5,000 Charged to the job during May Direct materials $ 8,000 Direct labor $ 2,000 Manufacturing overhead applied $ 4,000 Units completed 100 Units in process at the end of May 0 Units sold during May 40 In May, overhead...
Morrow Corporation had only one job in process during May—Job X32Z—and had no finished goods inventory...
Morrow Corporation had only one job in process during May—Job X32Z—and had no finished goods inventory on May 1. Job X32Z was started in April and finished during May. Data concerning that job appear below:         Job X32Z Beginning balance $ 5,800 Charged to the job during May Direct materials $ 9,100 Direct labor $ 2,800 Manufacturing overhead applied $ 4,800 Units completed 180 Units in process at the end of May 0 Units sold during May 80 In May, overhead...
Mr. Madden, a master cabinetmaker, owns and operates a custom-made cabinetry shop. He uses a normal...
Mr. Madden, a master cabinetmaker, owns and operates a custom-made cabinetry shop. He uses a normal costing system and applies overhead on the basis of direct labor cost. At the beginning of September, he had no outstanding debt and the following balances were in the general ledger:             Cash                                        $ 16,000             Raw Materials Inventory          $   2,200             Plant Supplies Inventory          $   1,000           Stockholders’ Equity                      Work in Process Inventory      $     ????               Common Stock                   ???             Finished Goods...
On March 1 a dressmaker starts work on three custom-designed wedding dresses. The company uses job...
On March 1 a dressmaker starts work on three custom-designed wedding dresses. The company uses job order costing and applies overhead to each job (dress) at the rate of 54% of direct materials costs. During the month, the jobs used direct materials as shown below. Job 1 Job 2 Job 3 Direct materials used $6,400 $8,400 $2,900 During the month, the jobs used direct labor as shown below. Jobs 1 and 3 are not finished by the end of March,...
On March 1 a dressmaker starts work on three custom-designed wedding dresses. The company uses job...
On March 1 a dressmaker starts work on three custom-designed wedding dresses. The company uses job order costing and applies overhead to each job (dress) at the rate of 40% of direct materials costs. During the month, the jobs used direct materials as shown below. Job 1 Job 2 Job 3 Direct materials used $ 5,000 $ 7,000 $ 1,500 During the month, the jobs used direct labor as shown below. Jobs 1 and 3 are not finished by the...
Christopher’s Custom Cabinet Company uses a job order cost system with overhead applied as a percentage...
Christopher’s Custom Cabinet Company uses a job order cost system with overhead applied as a percentage of direct labor costs. Inventory balances at the beginning of 2016 follow: Raw Materials Inventory   $   16,500 Work in Process Inventory      5,900 Finished Goods Inventory      20,800 The following transactions occurred during January: (a) Purchased materials on account for $26,700. (b) Issued materials to production totaling $20,600, 90 percent of which was traced to specific jobs and the remainder of which was treated...