Clemens Cars’s job cost sheet for Job A40 shows that the cost to add security features to a car was $11,000. The car was delivered to the customer, who paid $15,700 in cash for the added features. What journal entries should Clemens record for the completion and delivery of Job A40?

Clemens Cars’s Journal entry

1.

Dr Finished goods inventory$11,000

Cr Work in process inventory $11,000

2.

Dr Cost of goods sold$11,000

Cr Finished goods inventory $11,000

3.

DrCash$15,700

Cr Sales revenue $15,700

Explanation:

Based on the information given above in which Clemens Cars’s job cost sheet shows that the cost to add security features to a car was $11,000 which means we have to record cost of completed jobs to FG by Debiting Finished goods inventory with $11,000 and Crediting Work in process inventory with the same amount and as well record cost of goods soldby debiting Cost of goods sold with $11,000and crediting Finished goods inventory with the same amount.

Since the car was delivered to the customer, who paid $15,700 in cash for the added features which means we have to record sale price of job by Debiting Cash with $15,700and Crediting Sales revenue with the same amount.

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explanation:

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