Chesapeake Sailmakers uses job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined overhead rate based on direct labor costs. The following information appears in the company’s Work in Process Inventory account for the month of June:
| Debits to account: | ||
| Balance, June 1 | $ | 7,200 |
| Direct materials | 13,000 | |
| Direct labor | 9,200 | |
| Manufacturing overhead (applied to jobs as 150% of direct labor cost) | 14,000 | |
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| Total debits to account | $ | 43,400 |
| Credits to account: | ||
| Transferred to Finished Goods Inventory account | 33,200 | |
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| Balance, June 30 | $ | 10,200 |
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| a. |
Assuming that the direct labor charged to the jobs still in process at June 30 amounts to $2,100, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of June 30. (Omit the “$” sign in your response.) |
| Manufacturing overhead applied to jobs | $ |
| Direct materials charged to jobs | $ |
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| b. | Prepare general journal entries to summarize: (Omit the “$” sign in your response.) | |
| 1. |
The manufacturing costs (direct materials, direct labor, and overhead) charged to production during June. |
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| 2. |
The transfer of production completed during June to the Finished Goods Inventory account. |
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| 3. |
The cash sale of 90 percent of the merchandise completed during June at a total sales price of $46,000. Show the related cost of goods sold in a separate journal entry. |
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| General Journal | Debit | Credit | |
| 1. | choose one: land, manufacturing overhead, work in progress inventory, direct labor, finish good inventory, sales, cash, materials inventory, accounts payable, materials inventory, rental equipment, wages expense, costs of goods sold, | ||
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| 2. | choose one: same choices as above. | ||
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| 3. | choose one: same choices as above. | ||
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