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Farnham

Company completed jobs that cost

$44,000

to produce. In the same period, the company sold jobs for

$90,000

that cost

$43,000

to produce. Prepare the journal entries for the completion and sales of the jobs. All sales are on account. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Prepare the journal entry to record the completion of jobs.

Date			Accounts and Explanations	Debit	Credit
			(1)
			(2)
			(3)
			(4)
			(5)

Prepare the journal entry to record the sale of jobs. (Do not include the cost of the sale in this journal entry, it will be prepared in the next step.)

Date			Accounts and Explanations	Debit	Credit
			(6)
			(7)
			(8)
			(9)
			(10)

Prepare the journal entry for the cost to produce the jobs that were sold.

Date			Accounts and Explanations	Debit	Credit
			(11)
			(12)
			(13)
			(14)
			(15)

(1)

Accounts Payable

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Purchases

Raw Materials Inventory

Sales Revenue

Work-in-Process Inventory

(2)

Accounts Payable

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Purchases

Raw Materials Inventory

Sales Revenue

Work-in-Process Inventory

(3)

Accounts Payable

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Purchases

Raw Materials Inventory

Sales Revenue

Work-in-Process Inventory

(4)

Accounts Payable

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Purchases

Raw Materials Inventory

Sales Revenue

Work-in-Process Inventory

(5)

Adjusted MOH for underallocated overhead.

Allocated overhead to WIP.

Completed jobs, costs assigned to FG.

Incurred labor, direct labor assigned to WIP, indirect labor accumulated in MOH.

Incurred overhead, costs accumulated in MOH.

Purchased materials, accumulated in RM.

Sold jobs, costs assigned to COGS.

Sold jobs on account.

Used materials, direct materials assigned to WIP, indirect materials accumulated in MOH.

(6)

Accounts Payable

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Purchases

Raw Materials Inventory

Sales Revenue

Work-in-Process Inventory

(7)

Accounts Payable

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Purchases

Raw Materials Inventory

Sales Revenue

Work-in-Process Inventory

(8)

Accounts Payable

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Purchases

Raw Materials Inventory

Sales Revenue

Work-in-Process Inventory

(9)

Accounts Payable

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Purchases

Raw Materials Inventory

Sales Revenue

Work-in-Process Inventory

(10)

Adjusted MOH for underallocated overhead.

Allocated overhead to WIP.

Completed jobs, costs assigned to FG.

Incurred labor, direct labor assigned to WIP, indirect labor accumulated in MOH.

Incurred overhead, costs accumulated in MOH.

Purchased materials, accumulated in RM.

Sold jobs, costs assigned to COGS.

Sold jobs on account.

Used materials, direct materials assigned to WIP, indirect materials accumulated in MOH.

(11)

Accounts Payable

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Purchases

Raw Materials Inventory

Sales Revenue

Work-in-Process Inventory

(12)

Accounts Payable

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Purchases

Raw Materials Inventory

Sales Revenue

Work-in-Process Inventory

(13)

Accounts Payable

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Purchases

Raw Materials Inventory

Sales Revenue

Work-in-Process Inventory

(14)

Accounts Payable

Accounts Receivable

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Purchases

Raw Materials Inventory

Sales Revenue

Work-in-Process Inventory

(15)

Adjusted MOH for underallocated overhead.

Allocated overhead to WIP.

Completed jobs, costs assigned to FG.

Incurred labor, direct labor assigned to WIP, indirect labor accumulated in MOH.

Incurred overhead, costs accumulated in MOH.

Purchased materials, accumulated in RM.

Sold jobs, costs assigned to COGS.

Sold jobs on account.

Used materials, direct materials assigned to WIP, indirect materials accumulated in MOH.

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