Accounting Help

[Aimster]

Write a journal entry for:
Sold Jobs 136 and 138 on credit at a total price of $340,000.

Overhead rate = 200% of direct labor
Materials:
Job 136: $30,000
Job 138: $12,000

Labor:
Job 136: $8,000
Job 138: $25,000

I have this so far:
Cost of goods sold $340,000 (debit)
Finished Goods Inventory $141,000 (credit).

The cost of goods sold > Finished goods in inventory. So what do I do?

 

[Aimster]

Anyone?

 

[HappyPuppy]

This sounds like something I had to do in my freshman HS bookkeeping class. 😀


Sorry, can't help you. It's been far too long. 🙁

 

[Triforceofcourage]

Nevermind, I forget how to do this

 

[Emrys]

I'd wait for CPA for the right answer but:
Debit Accounts Receivable 340k
Credit Inventory 141k <--COGS
Credit Sales Revenue 199k <-Diff

I could be thinking balance sheet right now, it's been a little while. But generally think about Assets=Liablities + Equity (Comm stock and Retained Earnings). I could be going in a completely wrong dirrection with this, again it has been a while.

Oh yea, everything on the right of the equation has a credit balance except contra accounts if I remember right. *shrug*

 

[Albis]

Originally posted by: Emrys
I'd wait for CPA for the right answer but:
Debit Accounts Receivable 340k
Credit Inventory 141k <--COGS
Credit Sales Revenue 199k <-Diff

I could be thinking balance sheet right now, it's been a little while. But generally think about Assets=Liablities + Equity (Comm stock and Retained Earnings). I could be going in a completely wrong dirrection with this, again it has been a while.

Oh yea, everything on the right of the equation has a credit balance except contra accounts if I remember right. *shrug*

that looks right to me

sigh and i'm going to be doing my master's in accounting next yr and i almost forgot how to do basic accounting

 

[Orsorum]

First, calculate your manufacturing o/h rate for Job 136 and 138: 2*DL (I'm assuming the labor numbers you give are all DL?)

So for Job 136, your Mfg O/H is $16,000
For Job 138, your Mfg O/H is $50,000

Total cost for Job 136 = $30,000+8,000+16,000 = $54,000
Total cost for Job 138 = $12,000+25,000+50,000 = $87,000

FGI = $141,000

You have revenues of $340,000 and A/R of $340,000.

On date x-x-xxxx
Db. COGS 141,000
Cr. FGI 141,000
Db. A/R 340,000
Cr. Revenue 340,000

 

[Orsorum]

Originally posted by: Emrys
Oh yea, everything on the right of the equation has a credit balance except contra accounts if I remember right. *shrug*

Sounds right to me.

 

[Albis]

lol Orsorum is correct

wow i'm sleepy and can't think straight 😉

 

[Orsorum]

Originally posted by: Albis
lol Orsorum is correct

wow i'm sleepy and can't think straight 😉

lol Yeah, took me a couple seconds to figure it out. It's really easy to get COGS/COGM/Revenues all mixed together if you're tired, heck, even if you're wide awake! And I got a 3.6 in Basic Managerial, bad Orsorum! (and a 3.4 in Cost, 🙁)

 

[Orsorum]

Originally posted by: Aimster
Write a journal entry for:
Sold Jobs 136 and 138 on credit at a total price of $340,000.

Overhead rate = 200% of direct labor
Materials:
Job 136: $30,000
Job 138: $12,000

Labor:
Job 136: $8,000
Job 138: $25,000

I have this so far:
Cost of goods sold $340,000 (debit)
Finished Goods Inventory $141,000 (credit).

The cost of goods sold > Finished goods in inventory. So what do I do?

Did this work?

 

[letter rip]

How 'bout this:

db A/R 340k
cr Sales 340k

db COG 141k
cr FGI (Finished Goods Inv.) 42k
cr FOH (Factory O/H) 66k
cr DL (Direct Labor) 33k

 

[Michael]

You probably would be crediting raw materials or WiP if you're Job Costing.

Technically the flow is from Raw Materials into the job into FGI and then out the door, but typically you would just close the job (WiP) out to COGS.

dr. Materials cost
dr. Labour cost
dr. Overhead cost
cr. Materials - WiP (job#)
cr. Labour - WiP (job#)
cr. Overhead WiP (job #)

Would be one way to look at the costings part of it. You'll likely have different COGS accounts so you can track it in deatil there as well.

Replace the first three cost debits with debits to finished goods and then credit FGI and COGS would also work.

Michael (CA and CFO)

 

[Orsorum]

Originally posted by: Michael
You probably would be crediting raw materials or WiP if you're Job Costing.

Technically the flow is from Raw Materials into the job into FGI and then out the door, but typically you would just close the job (WiP) out to COGS.

dr. Materials cost
dr. Labour cost
dr. Overhead cost
cr. Materials - WiP (job#)
cr. Labour - WiP (job#)
cr. Overhead WiP (job #)

Would be one way to look at the costings part of it. You'll likely have different COGS accounts so you can track it in deatil there as well.

Replace the first three cost debits with debits to finished goods and then credit FGI and COGS would also work.

Michael (CA and CFO)

Yeah, WiP and RM crossed my mind as well.

 

[ATLien247]

Managerial accounting... yay!

(God, how I hated that course.)

 

[everman]

Just cook the books.