Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $420,000 and total machine hours at 60,000. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job:
Job 101 Job 102 Job 103 Total
Direct materials used $ 19,200 $ 14,400 $ 9,600 $ 43,200
Direct labor $ 28,800 $ 11,200 $ 9,600 $ 49,600
Machine hours 1,000 4,000 2,000 7,000
Job 101 was completed and sold for $60,000.
Job 102 was completed but not sold.
Job 103 is still in process.
Actual overhead costs recorded during the first month of operations totaled $45,000.
Required:
Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion.
Prepare the journal entries to recognize the sales revenue and cost of goods sold for Job 101.
Prepare the journal entry to transfer the balance of the Manufacturing Overhead account to Cost of Goods Sold