Question

During February, Alexander Inc. worked on two jobs with the following data: Job 12 Job 13 Units in each order 100 units 200 units Units sold 100 units ---- Materials requisitioned $2,480 $1,970 Direct labor hours 820 hrs. 1,166 hrs. Direct labor cost $12,300 $17,490 Overhead is assigned on the basis of direct labor hours at a rate of $12. During February, Job 12 was completed and transferred to finished goods. Job 13 is the only unfinished job at the end of the month. Prepare the journal entries reflecting the completion of Job 12 and its eventual sale on account. The selling price is 160% of cost.

Answer 1

Journal Entry- Alexander Inc.
Date	Account Tittle & Explanation	Debit	Credit
Aug. 31	Finished Goods	$24,620.00
	Work In Process		$24,620.00
	To Record Completion Of Job12
Aug. 31	Account Receivable (24620*160%)	$39,392.00
	Sales Revenue		$39,392.00
	To Record Sales of Job-12
Aug. 31	Cost Of Goods Sold	$24,620.00
	Finished Goods		$24,620.00
	To Record Cost Of Goods Sold for Job-12

Cost of Goods Sold for Job-12
Material Cost	$2,480.00
Labour Cost	$12,300.00
Manufacturign Overhead (12*820)	$9,840.00
Total cost for Job12	$24,620.00