Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen

Exercise 49

Journal Entries, T-Accounts
Ehrling Brothers Company makes jobs to customer order. During the month of July, the following occurred:
a. Materials were purchased on account for $45,670.
b. Materials totaling $40,990 were requisitioned for use in producing various jobs.
c. Direct labor payroll for the month was $22,400 with an average wage of $14 per hour.
d. Actual overhead of $9,020 was incurred and paid in cash.
e. Manufacturing overhead is charged to production at the rate of $5.50 per direct labor hour.
f. Completed jobs costing $58,000 were transferred to Finished Goods.
g. Jobs costing $59,000 were sold on account for $73,750.
Beginning balances as of July 1 were:

Required:
1. Prepare the journal entries for the preceding events.
2. Calculate the ending balances of:
a. Materials Inventory
b. Work-in-Process Inventory
c. Overhead Control
d. Finished Goods Inventory