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Jensen Fences uses job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined overhead rate based on direct labor costs. The following information appears in the company's Work in Process Inventory account for the month of June:
7,225
Instructions
Assuming that the direct labor charged to the jobs still in process at June 30 amounts to $1,700, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of June 30.
The manufacturing costs (direct materials, direct labor, and overhead) charged to production during June.
The transfer of production completed during June to the Finished Goods Inventory account.
The cash sale of 80 percent of the merchandise completed during June at a total sales price of $56,000. Show the related cost of goods sold in a separate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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