QUESTION 12 1.66667 Job no. C12 was completed in November at a cost of $28,500,

Question

QUESTION 12 1.66667 Job no. C12 was completed in November at a cost of $28,500, subdivided as follows: direct material, $13,500; direct labor, $6,000; and manufacturing overhead, $9,000. The journal entry to record the completion of the iob is: Finished-Goods Inventory Work-in-Process Inventory OWork-in-Process Inventory 28.500 28.500 28.500 Work-in-Process Inventory 28.500 Finished-Goods Inventory 28.500 Wages Payable Raw-Material Inventory Manufacturing Overhead 6,000 13.500 9.000 O Cost of Goods Sold 28,500 Finished-Goods Inventory 28,500 Finished-Goods Inventory 28.500 Cost of Goods Sold 28,500 Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Sa OIY ?

Explanation / Answer

SOLUTION

Correct entry would be-

Finished goods inventory Dr. 28,500

Work in process inventory Cr. 28,500

In job order costing, all the manufacturing costs are transferred to work in process inventory account. When job gets completed, costs are transferred from work in process account to finished goods inventory account.

So when costs are transferred from work in process accounts, it gets reduced by such amount, so it shall be credited and by transfering in finished goods inventory account, amount in such account gets increased so it shall be debited.

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