Job Cost Flows, Journal Entries

On April 1, Sangvikar Company had the following balances in its inventory

accounts:

Materials Inventory $12,730

Work-in-Process Inventory 21,340
Finished Goods Inventory 8,700
Work-in-process inventory is made up of three jobs with the following costs:

Job 114 Job 115 Job 116

Direct materials $2,411 $2,640 $3,650
Direct labor 1,800 1,560 4,300
Applied overhead 1,170 1,014 2,795
During April, Sangvikar experienced the transactions listed below.

a. Materials purchased on account, $29,000.

b. Materials requisitioned: Job 114, $16,500; Job 115, $12,200; and Job 116,
$5,000.
c. Job tickets were collected and summarized: Job 114, 150 hours at $12 per
hour; Job 115, 220 hours at $14 per hour; and Job 116, 80 hours at $18 per
hour.
d. Overhead is applied on the basis of direct labor cost.
e. Actual overhead was $4,415.
f. Job 115 was completed and transferred to the finished goods warehouse.
g. (1) Job 115 was shipped, and (2) the customer was billed for 125 percent of
the cost.