Please prepare journal entries for the following cost flows. (1). Sharon Company uses job-order costing system....

Please prepare journal entries for the following cost flows.

(1). Sharon Company uses job-order costing system. In July, direct labor cost incurred $90,000 and indirect labor cost incurred $80,000.

(2). Sharon Company Job costing $52,000 according to their job cost sheets were completed during July and transferred to Finished Goods.

(3). Sharon Company sold the $38,000 in Finished Goods Inventory to customers for $52,000 on account.

(4). Process Cost Flows: The Flow of Applied Manufacturing Overhead Costs. Applied manufacturing overhead cost: bottling Department $65,000; and labelling Department $45,000

(5). Process Cost Flows: Transferred incomplete bottle water from the Bottling Department to the Labelling Department: $850,000

Solutions

Expert Solution

(1) Dr. Work-in-process inventory (direct) $90,000

Dr. Manufacturing overhead (indirect) $80,000

Cr. Wages and salaries payable $170,000

(Direct and Indirect Labour cost incurred)

(2) Dr. Finished goods inventory $52,000

Cr. Work-in-process inventory $52,000

(Goods completed and transferred to finished goods)

(3) Dr. Accounts receivable $52,000

Cr. Sales $52,000

Dr. Cost of goods sold $38,000

Cr. Finished goods inventory $38,000

(Goods sold on account)

(4) Dr. Work-In-Progress Inventory: Bottling Department $65,000

Dr. Work-In-Progress Inventory: Labelling Department $45,000

Cr. Manufacturing Overhead $110,000

(Applied manufacturing overhead cost to both departments)

(5) Dr. Work-In-Progress Inventory: Labelling Department $850,000

Cr. Work-In-Progress Inventory: Bottling Department $850,000

(Transferred incomplete bottle water from Bottling to Labelling

Department)

ekkarill92 answered 1 year ago

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