Total Actual Manufacturing

2. Assume the ending raw materials inventory is $1,000 and the company does not use any indirect materials.

Required:

Prepare a completed Work in Process T-account including the beginning and ending balances and all debits and credits posted to the account. (Record the transactions in the given order. Leave no cells blank - be certain to enter "0" wherever required.)

Work in Process

  Beg. Bal

  End. Bal

3. Assume the ending raw materials inventory is $1,000 and the company does not use any indirect materials.

Required:

Prepare the journal entry to transfer costs from Finished Goods to Cost of Goods Sold.

General Journal

 Debit

Credit

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):

 Estimated total fixed manufacturing overhead

$

10,000  

 Estimated variable manufacturing overhead per direct labor-hour

$

1.00  

 Estimated total direct labor-hours to be worked

2,000  

 Total actual manufacturing overhead costs incurred

$

12,500  

Job P

Job Q

 Direct materials

$

13,000  

 $

8,000   

 Direct labor cost

$

21,000  

$

7,500   

 Actual direct labor-hours worked

1,400  

500   

The ending raw materials inventory is $1,000 and the company does not use any indirect materials.

4. Assume that Job P includes 20 units that each sell for $3,000 and that the company’s selling and administrative expenses in March were $14,000.

Required:

Prepare an absorption costing income statement for March. (Input all amounts as positive values except losses which should be indicated by minus sign.)

Income statement for March

$   

$