Journal Entries, T-Accounts Ehrling Brothers Company makes jobs to customer order. During the month of July, the...

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Accounting

Journal Entries, T-Accounts

Ehrling Brothers Company makes jobs to customer order. Duringthe month of July, the following occurred:

  1. Materials were purchased on account for $45,760.
  2. Materials totaling $40,980 were requisitioned for use inproducing various jobs.
  3. Direct labor payroll for the month was $22,400 with an averagewage of $14 per hour.
  4. Actual overhead of $8,860 was incurred and paid in cash.
  5. Manufacturing overhead is charged to production at the rate of$5.40 per direct labor hour.
  6. Completed jobs costing $58,000 were transferred to FinishedGoods.
  7. Jobs costing $58,000 were sold on account for $ 73,750. Makethe entry to record the revenue from the sale first, followed bythe entry to record the cost of the jobs.

Beginning balances as of July 1 were:

Materials Inventory$1,200
Work-in-Process Inventory3,400
Finished Goods Inventory2,620

Required:

1. Prepare the journal entries for thepreceding events.

a.
b.
c.
d.
e.
f.
g (1).
g (2).

2. Calculate the ending balances of:

a. Materials Inventory$
b. Work-in-Process Inventory$
c. Overhead Control$
d. Finished Goods Inventory$

Answer & Explanation Solved by verified expert
4.4 Ratings (961 Votes)

Date Account titles & Explanations Debit Credit
a Raw materials inventory 45,760
Accounts payable 45,760
b Work in process inventory 40,980
Raw materials inventory 40,980
c work in process inventory 22,400
wages payable 22,400
d Manufacturing overhead 8,860
cash 8,860
e work in process inventory 8640
Manufacturing overhead 8,640
(22400/14= 1600 hrs
f finished goods inventory 58,000
work in process inventory 58,000
g1) Accounts receivable 73,750
sales 73,750
g2) cost of goods sold 58,000
finished goods inventory 58,000
a) Materials inventory
BB 1,200 b) 40,980
a) 45,760
End bal 5,980
b) work in process inventory
BB 3,400 f) 58,000
b) 40,980
c) 22,400
e) 8640
End bal 17,420
c) overhead control
d) 8,860 e) 8640
End bal 220
d) Finished goods inventory
BB 2,620 g2) 58,000
f) 58,000
End bal 2,620

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