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43 votes
Entry for Jobs Completed; Cost of Unfinished Jobs

The following account appears in the ledger prior to recognizing the jobs completed in August:
Work in Process
Balance, August 1 $8,920
Direct materials 72,520
Direct labor 78,230
Factory overhead 41,120
Jobs finished during August are summarized as follows:
Job 210 $36,140
Job 216 22,090
Job 224 42,170
Job 230 78,310
a. Journalize the entry to record the jobs completed.
b. Determine the cost of the unfinished jobs at August 31.
$

User Nicola Musatti
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1 Answer

22 votes
22 votes

Answer:

a. Journal Entry to record the jobs completed:

Debit Finished Goods Inventory $178,710

Credit Work in Process $178,710

To record the jobs completed.

b. The cost of the unfinished jobs at August 31 is:

= $23,080

Step-by-step explanation:

a) Data and Analysis:

Work in Process

Account Titles Debit Credit

Balance, August 1 $8,920

Direct materials 72,520

Direct labor 78,230

Factory overhead 41,120

Finished goods inventory $178,710

Balance (unfinished jobs) 23,080

Total $201,790 $201,790

Jobs finished during August are summarized as follows:

Job 210 $36,140

Job 216 22,090

Job 224 42,170

Job 230 78,310

Total $178,710

a. Journal Entry Analysis to record the jobs completed:

Finished Goods Inventory $178,710 Work in Process $178,710

b. The cost of the unfinished jobs at August 31 is:

= Total of work in process Minus Finished Goods

= $201,790 - $178,710

= $23,080

User Piera
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