Job Cost Flows, Journal Entries
On April 1, Sangvikar Company had the following balances in itsinventory accounts:
| Materials Inventory | $12,720 |
| Work-in-Process Inventory | 21,350 |
| Finished Goods Inventory | 8,700 |
Work-in-process inventory is made up of three jobs with thefollowing costs:
| Job 114 | Job 115 | Job 116 |
| Direct materials | $2,804 | $2,640 | $3,650 |
| Direct labor | 1,800 | 1,560 | 4,300 |
| Applied overhead | 1,080 | 936 | 2,580 |
During April, Sangvikar experienced the transactions listedbelow.
- Materials purchased on account, $28,000.
- Materials requisitioned: Job 114, $16,500; Job 115, $12,400;and Job 116, $5,000.
- Job tickets were collected and summarized: Job 114, 150 hoursat $15 per hour; Job 115, 220 hours at $17 per hour; and Job 116,80 hours at $18 per hour.
- Overhead is applied on the basis of direct labor cost.
- Actual overhead was $4,765.
- Job 115 was completed and transferred to the finished goodswarehouse.
- (1) Job 115 was shipped, and (2) the customer was billed for125 percent of the cost.
Required:
1. Prepare journal entries for the Apriltransactions.
2. Calculate the ending balances of each of theinventory accounts as of April 30. Post the entries to theT-accounts in the same order in which they were journalized.
