The completion of units in process and their transfer

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Reference no: EM13935458

Wilmont Box Company produces a single box used by Air Speed, an express shipping company. Wilmont uses a just in time system and has almost no inventories of material, work in process, or finished goods. Indeed, the balances are so small that the company treats them as zero for purposes of its accounting reports.
During July, the company produced and shipped 125,000 boxes at a cost of $0.90 per box. The cost consisted of 40 percent material cost, 15 percent labor cost, and 45 percent manufacturing overhead.

Required:

Prepare journal entries to record:

a. The issuance of direct material.
b. The cost of direct labor (credit wages payable).
c. The application of manufacturing overhead.
d. The completion of units in process and their transfer to finished goods.
e. Cost of goods sold.

Reference no: EM13935458

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