28PGA_d Clement Manufacturing makes carr... [FREE SOLUTION]

Chapter 17: 28PGA_d (page 947)

Clement Manufacturing makes carrying cases for portable electronic devices. Its costing records yield the following information:
Job No.
Date
Total cost of Job at October 31
Total manufacturing costs added in November
Started
Finished
Sold
1
10/03
10/12
10/13
$1,300
2
10/03
10/30
11/01
1,400
3
10/17
11/24
11/27
1,000
$900
4
10/29
11/29
12/03
1,200
1,200
5
11/08
11/12
11/14
650
6
11/23
12/06
12/09
500
Requirements
4. Record the sale of Job 3 for $2,300 on account

Short Answer

Expert verified

Date	Particulars	Debit ($)	Credit ($)
1.	Account receivable	2,300
	Sales revenue		2,300

2.	Cost of goods sold	1,900
	Finished goods inventory		1,900

Step by step solution

Cost of goods sold for Job no. 3

$\begin{matrix} Costofgoodssold = TotalcostofJobNo . 3 tillOctober 31 + TotalcostofJobNo . 3 inNovember \\ = $ 1, 000 + $ 900 \\ = $ 1, 900 \end{matrix}$

Recording of sales transaction in the books of the company

The sale on account of the company is recorded by the company by debiting the accounts receivable account and by crediting the sales revenue account. And the related cost of goods sold is recorded by debiting the cost of goods sold and by crediting the finished goods inventory account.

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June 1 balance	\(36,000
Direct materials used	32,000
Direct labor assigned to jobs	40,000
Manufacturing overhead allocated to jobs	28,000

Estimated manufacturing overhead cost for the year	$125,000
Estimated direct labor cost for the year	78,125
Actual manufacturing overhead cost for the year	116,000
Actual direct labor cost for the year	67,000

Wood	$270,000
Nails, glue, stain	18,000
Depreciation on saws	5,300
Indirect manufacturing labor	45,000
Depreciation on delivery truck	1,700
Assembly-line worker鈥檚 wages	51,000

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Short Answer

Step by step solution

Cost of goods sold for Job no. 3

Recording of sales transaction in the books of the company

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Job No.	Date	Total cost of Job at October 31	Total manufacturing costs added in November
Started	Finished	Sold
1	10/03	10/12	10/13	\(1,300
2	10/03	10/30	11/01	1,400
3	10/17	11/24	11/27	1,000	\)900
4	10/29	11/29	12/03	1,200	1,200
5	11/08	11/12	11/14		650
6	11/23	12/06	12/09		500