Question

The following account appears in the ledger prior to recognizing the jobs completed in January:

Answer 1

Answer:

Following are the solution to this question:

Explanation:

In point a:

Journal Entry :

Account                                      Dr                            Cr.

Goods completed              $\ 358,680$

Processing work                                                 $\ 358,680$

Complete total labour costs

$= \ 70,950 + \ 82,770 + \ 43,360 + \ 161,600 \\\\ = \ 358680$

In point b:

Uncompleted jobs cost:

$\text{Balance, January 1} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 17,510\\\\\text{Direct materials} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 142,360\\\\ \text{Direct labor } \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 153,560\\\\\text{Factory overhead } \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 80,720\\\\\text{Cost of Finished Goods Transferred} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ (\ 358680)\\\\\text{Cost of Unfinished Jobs on Aug 31} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 35470$