Question

Shamrock Industries uses process costing. All of the company's manufacturing activities take place in a single processing department. The following information was available for the month of June. Direct materials $ 89,000 Direct labor 30,000 Manufacturing overhead applied 39,000 Total costs to account for in June $ 158,000 The amounts of work in process at the beginning and end of the month were immaterial and assigned no dollar value. During June, 13,250 units were completed, of which 10,000 were sold on account at $25 per unit. a. Prepare a journal entry to summarize the total manufacturing costs applied to production in June. b. Prepare the journal entry to transfer completed units from work in process to the finished goods warehouse in June. c. Prepare the journal entries to record the sale of 10,000 units manufactured during the period and the related cost of goods sold.

Answer 1

Step-by-step explanation:

Cost Current Complete Closing WIP Equivellant Cost per Unit

Material 89,000 13,250 - 13,250 6.7170

Flavour 30,000 13,250 - 13,250 2.2642

OH 39,000 13,250 - 13,250 2.9434

11.92

Complete 13,250 11.92 158,000

A)

WIP 158000

material 89000

labor 30000

M.O.H 39000

B)

Inventory 158000

WIP 158000

transfer the wip in to stock

C)

Cash 250000

Revenue 250000

to record the revenue

Cost of goods sold (10000*11.92) 119200

Inventory (10000*11.92) 119200

To record the cost of goods sold