# (Solved Homework): 2,240 2,2 Work-n-Process Inventory Next, journalize the revenue portion of the sale of Job 423 Accounts Debit Credit Date Apr 3 Accounts R…

Help me journalise this transaction

2,240 2,2 Work-n-Process Inventory Next, journalize the revenue portion of the sale of Job 423 Accounts Debit Credit Date Apr 3 Accounts Receivable Sales Revenue Choose from any list or enter any number in the input fields and then click Check Answer Clear All remaining

Solution:

Don't use plagiarized sources. Get Your Custom Essay on
(Solved Homework): 2,240 2,2 Work-n-Process Inventory Next, journalize the revenue portion of the sale of Job 423 Accounts Debit Credit Date Apr 3 Accounts R…
Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT!

Calculation of Total Cost of Production for Job 423

 US\$ Direct Material Cost (372 + 675 + 135) 1,182 Direct Labor Cost (160+300) 460 Applied Overhead (Refer note 1) 598 Total Cost of Production 2,240

Note 1 – Applied Overhead to Job 423

Overheads are the indirect expenses which do not have the direct relation with the production or job. Overheads are incurred normally for the period, hence it is considered as period cost.

Overheads are generally allocated to the production department on some suitable basis. Suitable basis depends on the company’s policy. Suitable basis may be Direct Labor Cost, Direct Labor hour, machine hours etc.

In the question, the overheads are allocated on the basis of Direct Labor Cost. So we need to calculate the predetermined overhead rate to allocate the overhead.

Predetermined Overhead Rate (on direct labor cost) = Estimated Overhead / Estimated Direct labor cost

= \$637,000 / \$490,000

= 1.3 or 130% of Direct Labor Cost

Hence, the applied overhead to Job 423 = Direct Labor Cost of Job 423 * 130%

= 460*130%

= 598

1) Journal Entry to show the completion of Job

 Date Accounts Debit Credit Apr.3 Finished Goods Inventory 2,240 Work in process inventory 2,240

2) Journal entry to record revenue portion of the sale of Job 423

 Date Accounts Debit Credit Apr.3 Accounts Receivable (5,400 DVD x \$1.1) \$5,940 Sales Revenue \$5,940

Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

## Calculate the price of your order

Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

## Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.