Managerial Accounting: P17-1A Chesapeake Sailmakers uses job order costing

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Managerial Accounting
P17-1A Job Order Costing Computations and Journal Entries
Chesapeake Sailmakers uses job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined overhead rate based on direct labor costs. The following information appears in the company's work in process inventory account for the month of June:
Debits to account:
Balance, June 1 7,200
Direct materials 12,000
Direct labor 9,000
Manufacturing overhead (applied to jobs as 150% of direct labor cost) 13,500
Total debits to account 41,700
Credits to account:
Transferred to Finished Goods Inventory account 33,200
Balance, June 30 8,500

a. Assuming that the direct labor charged to the jobs still in process at June 30 amounts to $2,100, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of June 30.
b. Prepare general journal entries to summarize:
1. The manufacturing cost (direct materials, direct labor, and overhead) charged to production during June.
2. The transfer of production completed during June to the Finished Goods Inventory account.
3. The cash sale of 90 percent of the merchandise completed during June at a total sales price of $46,500. Show the related cost of goods sold in a separate journal entry.
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