Select your language

Suggested languages for you:
Log In Start studying!
Answers without the blur. Sign up and see all textbooks for free! Illustration

Q.17-22E-c

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

Answers without the blur.

Just sign up for free and you're in.

Illustration

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

3. Prepare the journal entry to record the sale on account of Job 143 for $63,000.

Also, prepare the journal entry to record Cost of Goods Sold for Job 143.

Date

Particulars

Debit ($)

Credit ($)

1

Accounts receivable

63,000

Sales revenue

63,000

(to record sales on account)

2

Cost of goods sold

48,000

Finished goods inventory

48,000

(to record the cost of good sold for job 143)

See the step by step solution

Step by Step Solution

Sales revenue

Sales revenue is calculated by multiplying the unit price of the product with the number of units sold by the company during the year.

Recording of sales and cost of goods sold in the books of the company

The company record the sales of the company by debiting the account receivable and crediting the sales revenue and the cost of good sold is recorded by debiting the cost of goods sold by the company and crediting the finished goods inventory.

Recommended explanations on Business-studies Textbooks

94% of StudySmarter users get better grades.

Sign up for free
94% of StudySmarter users get better grades.