08 Dec Ehrling Brothers Company makes jobs to customer or
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: Materials Inventory .$1,200 Work-in-Process Inventory . 3,400 Finished Goods Inventory . 2,630 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
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