Work in Progress inventory means the stock which is still in the process of production. Finished Goods inventory means those goods on which the work of production is completed and they are available for sale. Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market. Manufacturing overhead is directly applied over the direct labor hour. To prepare: All Necessary Journal Entries of company’s payroll costs and Pass journal entry of the manufacturing overhead to the production.

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Chapter 2, Problem 11ME

To determine

Concept introduction:

Work in Progress inventory means the stock which is still in the process of production.

Finished Goods inventory means those goods on which the work of production is completed and they are available for sale.

Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market.

Manufacturing overhead is directly applied over the direct labor hour.

To prepare:

All Necessary Journal Entries of company’s payroll costs and Pass journal entry of the manufacturing overhead to the production.

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