Question

The following account appears in the ledger prior to recognizing the jobs completed in January: Work in ProcessBalance, January 1 $ 72,000Direct materials 390,000Direct labor 500,000Factory overhead 250,000Jobs finished during January are summarized as follows:Job 210 $200,000 Job 224 $225,000Job 216 288,000 Job 230 436,800a. Journalize the entry to record the jobs completed.b. Determine the cost of the unfinished jobs at January 31.

Answer 1

Year-end WIP 62,200

jounral entry for completed jobs:

-------------------------------------

Finished Good Inventory 1,149,800 DEBIT

WIP inventory 1,149,800 CREDIT

-------------------------------------

Step-by-step explanation:

WIP

Beginning $ 72,000

Materials $ 390,000

Labor $ 500,000

Overhead $ 250,000

Total WIP $ 1,212,000

Finished Jobs:

Job 210 $ 200,000

Job 224 $ 225,000

Job 216 $ 288,000

Job 230 $ 436,800

Total $ 1,149,800

the jobs complete will move to finished good and credit WIP inventory

WIP year-end:

1,212,000 - 1,149,800 = 62,200