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Ehrling Brothers Company makes jobs to customer order. During the month of July, the following occurred: Materials were purchased on account for $45,760. Materials totaling $40,980 were requisitioned for use in producing various jobs. Direct labor payroll for the month was $25,600 with an average wage of $16 per hour. Actual overhead of $8,870 was incurred and paid in cash. Manufacturing overhead is charged to production at the rate of $5.40 per direct labor hour. Completed jobs costing $60,000 were transferred to Finished Goods. Jobs costing $59,000 were sold on account for $ 73,850. Make the entry to record the revenue from the sale first, followed by the entry to record the cost of the jobs. Beginning balances as of July 1 were: Materials Inventory$1,200 Work-in-Process Inventory3,400 Finished Goods Inventory2,620
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Ehrling Brothers Company makes jobs to customer order. During the month of July, the following occur...
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