Please show your work Entry for jobs completed; cost of unfinished jobs The foll
ID: 2416655 • Letter: P
Question
Please show your work
Entry for jobs completed; cost of unfinished jobs
The following account appears in the ledger prior to recognizing the jobs completed in June:
Work in Process
__________________________________________________
Balance, June 1 $40,000
Direct materials 270,000
Direct labor 320,000
Factory overhead 176,000
Jobs finished during June are summarized as follows:
Job 320 $160,000 Job 327 $100,000
Job 326 175,000 Job 350 318,000
a. Journalize the entry to record the jobs completed.
b. Determine the cost of the unfinished jobs at June 30.
Explanation / Answer
Total job Completed = $160,000+175,000+$100,000+318,000 = $753,000
A)
Dr. Finished goods inventory A/c $753,000
Cr. Work in process A/C $753,000
B)
Total of work in process = $40,000+270,000+320,000+176,000 = $806,000
Less Finished goods transferred = $753,000
Therefore Cost of unfinished jobs = $806,000-$753,000 = $53,000