Work in Process Danielle Company is working on two job orders. The job cost sheets show the following: Direct materials—Job 120 $6,000; Job 121 $3,600 Direct labor—Job 120 $4,000; Job 121 $2,000 Manufacturing overhead—Job 120 $5,000; Job 121 $2,500 Prepare the three summary entries to record

Question

Work in Process
Danielle Company is working on two job orders. The job cost sheets show the following:
Direct materials—Job 120 $6,000; Job 121 $3,600
Direct labor—Job 120 $4,000; Job 121 $2,000
Manufacturing overhead—Job 120 $5,000; Job 121 $2,500
Prepare the three summary entries to record the assignment of costs to Work in Process from the data on the job cost sheets.

Accepted Answer

The three summary entries are:

Work in Process Inventory ($6,000 + $3,600)	9,600
Raw Materials Inventory		9,600
(To assign materials to jobs)
Work in Process Inventory ($4,000 + $2,000)	6,000
Factory Labor		6,000
(To assign labor to jobs)
Work in Process Inventory ($5,000 + $2,500)	7,500
Manufacturing Overhead		7,500

ACTION PLAN
• Recognize that Work in Process Inventory is the control account for all
unfinished job cost sheets.
• Debit Work in Process Inventory for the materials, labor, and overhead charged to the job cost sheets.
• Credit the accounts that were debited when the manufacturing costs were accumulated.

Related exercise material: BE2.3, BE2.4, BE2.5, DO IT! 2.2, E2.2, E2.7, and E2.8.

Question 2.DI.2: Work in Process Danielle Company is working on two job order...

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