Question

Clemens Cars’s job cost sheet for Job A40 shows that the cost to add security features to a car was $23,500. The car was delivered to the customer, who paid $28,200 in cash for the added features. What journal entries should Clemens record for the completion and delivery of Job A40?

Answer 1

Answer:

Finished Goods

Dr Working in progress $23,500

Cr Transfer from Work in progress to Finished goods $23,500

Cost of goods sold

Dr Finished Goods $23,500

Cr Transfer from Finished Goods to Cost of goods sold $23,500

CASH

Dr Sales $ 28,200

Cr Sale of car after job was completed $28,200

Explanation:

Clemens Cars’s Journal entries

Finished Goods

Dr Working in progress $23,500

Cr Transfer from Work in progress to Finished goods $23,500

Cost of goods sold

Dr Finished Goods $23,500

Cr Transfer from Finished Goods to Cost of goods sold $23,500

CASH

Dr Sales $ 28,200

Cr Sale of car after job was completed $28,200