Respuesta :
Answer:
(It is assume that completed unit have been transferred to next department)
The jounal entries for each transaction is given below.
Cost of units completed in the Cutting Department, $17,000
Debit WIP stamping Dept $ 17,000
Credit WIP cutting Dept $ 17,000
Cost of units completed in the Stamping Department, $30,000
Debit WIP polishing Dept $ 30,000
Credit WIP stamping Dept $ 30,000
Cost of units completed in the Polishing Department, $35,000
Debit Finished good $ 35,000
Credit WIP polishing Dept $ 35,000
Sales on account, $50,000
Debit GOGS $ 40,000
Credit Finished good $ 40,000
Debit Receivable Account $ 50,000
Credit Sales $ 50,000
Answer:
Cutting department journal entry Dr : finished good $17,000, Cr : work in process $17,000, Stamping department journal entry Dr: finished good $30000, Cr: work in process $30,000, polishing department journal entry Dr: finished good $35,000, Dr:work in process $35,000, sales on account journal entry Dr: Account Receivable $50,000, Cr: Sales $50,000,, cost of good sold journal entry Dr:cost of good sold $40,000, Cr: finished good $40,000
Explanation:
Cutting department journal entry
Account Name Dr. Cr
$ $
Finished good. 17,000
Work In process 17,000
Stamping department journal entry
Account Name Dr. Cr
$ $
Finished good. 30,000
Work In process 30,000
Polishing department journal entry
Account Name Dr. Cr
$ $
Finished good. 35,000
Work In process 35,000
Sales on Account journal entry
Account Name Dr. Cr
$ $
Account Receivable 50,000
Sales. 50,000
Cost of good sold journal entry
Account Name. Dr. Cr
$ $
Cost of good sold. 40,000
Finished good. 40,000
Working of cost of good sold
80% of sales
= 80÷100 = 0.8
= 0.8 × 50,000
=40,000
