At Inshore Inc., the beginning balance of the work in process inventory account in July of the most recent year was $32,640. Direct materials used during July totaled $268,800. Total manufacturing labour incurred in June was $313,920, 80% of this amount represented direct labour. The predetermined manufacturing overhead rate is 120% of direct labour cost. Actual manufacturing overhead costs for July amounted to $238,080.
In July, two jobs were completed with total costs of $195,840 and $157,440, respectively.

In July, the two jobs were sold on account for $336,000 and $238,840, respectively.

a) Compute the balance in work in process inventory on July 31.
b) Record the journal entry for direct materials used in July.
c) Record the journal entry to record labour costs for July.
d) Record the journal entry for allocated manufacturing overhead for July.
e) Record the entry to move the completed jobs into finished goods inventory in July.
f) Record the entry to sell the two completed jobs on account in July.

Question

At Inshore Inc., the beginning balance of the work in process inventory account in July of the most recent year was $32,640. Direct materials used during July totaled $268,800. Total manufacturing labour incurred in June was $313,920, 80% of this amount represented direct labour. The predetermined manufacturing overhead rate is 120% of direct labour cost. Actual manufacturing overhead costs for July amounted to $238,080.
In July, two jobs were completed with total costs of $195,840 and $157,440, respectively.

In July, the two jobs were sold on account for $336,000 and $238,840, respectively.

a) Compute the balance in work in process inventory on July 31.
b) Record the journal entry for direct materials used in July.
c) Record the journal entry to record labour costs for July.
d) Record the journal entry for allocated manufacturing overhead for July.
e) Record the entry to move the completed jobs into finished goods inventory in July.
f) Record the entry to sell the two completed jobs on account in July.

Quizplus · Accepted Answer

The Answer of At Inshore Inc., the beginning balance of the work in process inventory account in July of the most recent year was $32,640. Direct materials used during July totaled $268,800. Total manufacturing labour incurred in June was $313,920, 80% of this amount represented direct labour. The predetermined manufacturing overhead rate is 120% of direct labour cost. Actual manufacturing overhead costs for July amounted to $238,080.
In July, two jobs were completed with total costs of $195,840 and $157,440, respectively.

In July, the two jobs were sold on account for $336,000 and $238,840, respectively.

a) Compute the balance in work in process inventory on July 31.
b) Record the journal entry for direct materials used in July.
c) Record the journal entry to record labour costs for July.
d) Record the journal entry for allocated manufacturing overhead for July.
e) Record the entry to move the completed jobs into finished goods inventory in July.
f) Record the entry to sell the two completed jobs on account in July.