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Q.17-22E-b

Expert-verified
Horngren'S Financial And Managerial Accounting
Found in: Page 944

Short Answer

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.

Work-in-process inventory account

Particulars

Amount ($)

Particulars

Amount ($)

Beginning balance

36,000

Finished goods inventory

85,000

Direct material used

32,000

Direct labor cost

40,000

Manufacturing overhead

28,000

Closing balance

51,000

136,000

136,000

See the step by step solution

Step by Step Solution

Finished goods inventory

Journal entry to record the finished goods inventory

Date

Particulars

Debit($)

Credit ($)

Finished goods inventory

85,000

Manufacturing overhead

85,000

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