Chapter 17: Q17-4RQ (page 937)
Question: What is the purpose of a job cost record?
Answer:
A job cost record is a document that shows the direct materials, direct labor, and manufacturing overhead costs for an individual job and allows the company to track the cost of individual jobs.
Over 30 million students worldwide already upgrade their learning with Vaia!
All the tools & learning materials you need for study success - in one app.
Get started for free
Question: Give the journal entry for raw materials purchased on account. Explain how this transaction affects the accounting equation.
Question: Why does the sale of a completed job require two journal entries? What are they?
June production generated the following activity in Bentley Chassis Company’s Work-in-Process Inventory account:
June 1 balance | \(36,000 |
Direct materials used | 32,000 |
Direct labor assigned to jobs | 40,000 |
Manufacturing overhead allocated to jobs | 28,000 |
Additionally, Bentley Chassis has completed Jobs 142 and 143, with total costs of
\)37,000 and $48,000, respectively.
Requirements
2. Open a T-account for Work-in-Process Inventory. Post the journal entry made in Requirement 1. Compute the ending balance in the Work-in-Process Inventory
account on June 30.
For the following accounts, indicate what causes the account to increase and decrease. The first account is completed as an example.
Account | Is increased by: | Is decreased by: |
Raw material inventory | Material purchased | Material used |
Work in process inventory | ||
Finished goods inventory | ||
Cost of goods sold |
What is an allocation base? Give some examples
What do you think about this solution?
We value your feedback to improve our textbook solutions.
