Question

EA13.

LO 4.7Job 113 was completed at a cost of $5,000, and Job 85 was completed at a cost of $3,000 and sold on account for $4,500. Prepare journal entries for the following:

Completion of Job 113.
Completion and sale of Job 85.

Answer 1

Journal entries for the

Completion of Job 113

Debit Finished Good/Inventory Account $ 5000

Credit WIP JOB 113 Account $ 5000

(In words we will debit finished good account by shifting work in process related to the job 113 in it)

Journal entries for the

Completion and sale of Job 85

Debit Finished Good/Inventory Account $ 3000

Credit WIP JOB 113 Account $ 3000

For sales following two entries will be passed.

Debit Cost of Good Sold Account $ 3000

Credit Finished Good/Inventory Account $ 3000

Debit Cash (or Receivable if credit sale) $ 4500

Credit Sales Account $ 4500