The Best Cabinets Inc. manufactures goods on a job order basis. During the month of November, three jobs were started. (There was no work in process at the beginning of the month.) Jobs 401 and 402 were completed and sold for $11,500 and $13,500, respectively, during the month; Job 403 was still in process at the end of November.
The following data are taken from the job cost sheets for each job. Factory overhead charges include a total of $1200 of indirect materials and $800 of indirect labor. One work in process control account is used.
Job 401 Job 402 Job 403
Direct materials $3,200 $3,550 $2,500
Direct labor 2,150 3,250 1,200
Factory overhead 1,150 1,900 650
Prepare a journal entry to record of the following:
a. Materials used, Factory wages and salaries earned
b. Factory Overhead transferred to Work in Process
c. Jobs completed and Jobs sold