Question

In March, Stinson Company completes Jobs 10 and 11. Job 10 cost $20,000 and Job 11 $30,000. On March 31, Job 10 is sold to the customer for $35,000 in cash.Journalize the entries for the completion of the two jobs and the sale of Job 10.Date Account Titles and Explanation Debit CreditMar. 31 31 31

Answer 1

Mar. 31

Dr Finished goods inventory $50,000

(20,000+30,00)

Cr Work in process inventory $50,000

31 Dr Cash $35,000

Cr Sales revenue $35,000

31 Dr Cost of goods sold $30,000

Cr Finished goods inventory $30,000

Step-by-step explanation:

Preparation of the journal entries for the completion of the two jobs and the sale of Job 10

Mar. 31

Dr Finished goods inventory $50,000

(20,000+30,00)

Cr Work in process inventory $50,000

(Being To record the completion of the two jobs)

31 Dr Cash $35,000

Cr Sales revenue $35,000

(Being To record the sale job 10)

31 Dr Cost of goods sold $30,000

Cr Finished goods inventory $30,000

(Being To record the cost of the job sold)