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Home / Questions / On June 30, Coraline Company finished job number 750, with total job costs of $4,600, and

On June 30, Coraline Company finished job number 750, with total job costs of $4,600, and

On June 30, Coraline Company finished job number 750, with total job costs of $4,600, and transferred                                           the costs to Finished goods.  On July 6, they completed the sale of the goods to a customer for $5,100                                            cash.  In order to record the sale, two entries are necessary—one to record revenue, and one to record cost                             of goods sold. Please provide the second of two entries to record cost of goods sold.

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

4,600

 

Finished goods inventory

 

4,600

 

Difficulty: 1

LO: 17-4

EOC Ref: E17-19

AACSB: Analytic Skills

AICPA Business Perspective Competencies: Critical Thinking

AICPA Functional Competencies: Measurement

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42At the beginning of 2012, Conway Manufacturing Company had the following account balances:

 

Work in process inventory

 

Finished goods inventory

 

Manufacturing overhead

 

Cost of goods sold

 

Sales revenue

2,000

 

 

8,000

 

 

0

 

 

0

 

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                           

 

During the year, the following transactions took place:

 

Direct materials placed in production:$  80,000

Direct labor incurred:$190,000

Manufacturing overhead incurred$300,000

Manufacturing overhead allocated to production:$295,000

Jobs completed with cost of:$500,000

 

Please record these transactions to the T-accounts and calculate preliminary balances in the Work in process, Finished goods and Manufacturing overhead accounts, using the format below:

 

Work in process inventory

 

Finished goods inventory

 

Manufacturing overhead

 

Cost of goods sold

 

Sales revenue

2,000

 

 

8,000

 

 

0

 

 

0

 

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                           

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                           

43At the beginning of 2012, Conway Manufacturing Company had the following account balances:

 

 

Work in process inventory

 

Finished goods inventory

 

Manufacturing overhead

 

Cost of goods sold

 

Sales revenue

2,000

 

 

8,000

 

 

0

 

 

0

 

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                           

 

During the year, the following transactions took place:

 

Direct materials placed in production:$  80,000

Direct labor incurred:$190,000

Manufacturing overhead incurred$300,000

Manufacturing overhead allocated to production:$295,000

Jobs completed with cost of:$500,000

Jobs sold for total revenue of:$750,000

Jobs sold with cost of:$440,000

 

Remaining balance of Manufacturing overhead cleared to zero.

Please record these transactions to the T-accounts and calculate ending balances in each of the accounts using the format below:

 

Work in process inventory

 

Finished goods inventory

 

Manufacturing overhead

 

Cost of goods sold

 

Sales revenue

2,000

 

 

8,000

 

 

0

 

 

0

 

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                           

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                           

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