Journal Entries, T-Accounts
Ehrling Brothers Company makes jobs to customer order. Duringthe month of July, the following occurred:
- Materials were purchased on account for $45,760.
- Materials totaling $40,980 were requisitioned for use inproducing various jobs.
- Direct labor payroll for the month was $22,400 with an averagewage of $14 per hour.
- Actual overhead of $8,860 was incurred and paid in cash.
- Manufacturing overhead is charged to production at the rate of$5.40 per direct labor hour.
- Completed jobs costing $58,000 were transferred to FinishedGoods.
- Jobs costing $58,000 were sold on account for $ 73,750. Makethe entry to record the revenue from the sale first, followed bythe entry to record the cost of the jobs.
Beginning balances as of July 1 were:
| Materials Inventory | $1,200 |
| Work-in-Process Inventory | 3,400 |
| Finished Goods Inventory | 2,620 |
Required:
1. Prepare the journal entries for thepreceding events.
2. Calculate the ending balances of:
| a. Materials Inventory | $ |
| b. Work-in-Process Inventory | $ |
| c. Overhead Control | $ |
| d. Finished Goods Inventory | $ |
