 and if we scroll down here we're looking for job 14 and job 15 so we're gonna scroll over all the way over to our job sheets over here and we have job 14 which is 186,000 and job 15 I'm gonna hold down control which is 314,000 that adds up to 500,000 so 500,000 is the amount that we're gonna transfer from working process to finished goods so I'm gonna scroll all the way back over here so both the debit 500,000 to finished goods and the credit credits of 500,000 to work in process that's the transaction let's make this smaller on the taskbar like so and scroll over here and post this out so we're gonna post the finished goods here but here it is on the trial balance here's the finished goods on the general ledger we are on the debit side in U of 18 equals pointing to that 500,000 that brings the balance up in the debit direction then we're looking for work in process here it is on the journal entry here it is on the trial balance and working process is right here we are on the credit side this time reducing working process in cell v12 equals and pointing to 500,000 bringing our balance down now note that what we did is we brought down the working process to 260 we're gonna have to do something with our backup account now to in order to in order to back that number up in our jobs cost sheets because if we go over here to the job cross sheets we still see the job cross sheets here we still see them so we have to indicate in some way on the job cross sheets that hey that you know we transfer these jobs they're no longer in work in process they shouldn't be included in this number they shouldn't be in here so how do we take it out of there well there's different softwares that'll do that but in this case we could say well you know this is no longer an open job we can say that it is now a closed job maybe just highlight that the fact that it's now closed like so and therefore it needs to be removed from the the yellow area here so we can say this is this job is closed we'll make it green like that so this should only include the yellow jobs which are open indicating that they are open so this one's open maybe this should be yellow too okay so i'm going to double click on that then that means that or we could just delete it and i'm going to say that the new entry should just be this job that's all that should be in there and that means that that now ties out to the work in process so the green jobs are now closed out and the the only open jobs that are being backed up by this cost sheet now are the ones that have not yet been transferred to finished goods being the 260 so we can see that 260 just includes that job that 260 is what is in work in process and of course we could see what's in finished goods to the 500 being in this case the 186 and the 314 adds up to the 500 okay and then once we transfer it out of there i'm going to say it's it's shipped all right we also see the work in process and the finished goods over here on the trial balance respectively at the 260 and 500 all right let's make it larger again back up to 100 on the side scrolling back over to the left we are now on the next transaction which says that we uh on 131 record sale of job 14 so we sold job 14 for 380 thousand so we are 131 okay so we sold the job now we can think of the first half of the sale just like any type of sale we made a sale what happens when we make a sale well we think what is cash affected in this case did we sell it for cash yeah we did so cash is affected cash is going up by the 130 by the 380 so cash has a debit balance we're going to make it go up by doing the same thing to it which in this case is another debit so i'm going to copy cash i'm going to put that up in h13 right click paste 123 and then we're going to credit income or in this case sales so this is the actual sale that happened so we're down here in sales uh sales have credit balances we're going to make it go up by doing the same thing to it which is another credit just like any sale this is the normal transaction for any type of business where we we um generated revenue and got cash for it we increased cash we increased the uh revenue account cash is being debited revenue is being credited and i just did the wrong thing on a right click and copy and our revenue account being called sales in this case because we sell stuff and we have the amount of 380 now a lot of people are going to get confused on the 380 we're saying well how did we come up with a 380 that arbitrary number why don't we i mean don't we have to look at the job cost sheet in some way to think about how much uh we sold it for and notice that we might get the sales price from the job cost sheet meaning we might have a rule that we're saying hey whatever the cost of the project is we're going to mark it up by 30 percent meaning we might use the job cost sheet to come up with the sales price but the cost is what we've been tracking not the sales price the sales price should of course be higher than the cost unless we underbid the job but uh notice that in a lot of problems they might just give you the sales price and and or they might not even talk about the sales price and just talk about the the movement of the inventory so when we start thinking about the inventory it's a lot of times it gets confusing because people ignore we tend to ignore the sales side of things and lose sight of the fact that the sales is going to be slightly different than what we've been working on we've been working on tracking the cost the whole time so we might use the cost in order to come up with the sales price but many problems might just give you the sales price and then we have to record the other half of the journal entry which is similar to the other half of any journal entry if we were a merchandising company and that is that we have now reduced the inventory meaning our inventory now being the finished inventory because we're not going to sell the stuff that's in process unless someone wants to finish it themselves and we're going to like sell it at a discount or something but otherwise we're probably going to sell the inventory that has been completed and it has a debit balance we're going to make it go down so i'm going to copy that i'm going to skip a line and skip another line to put it on the bottom so we're going to credit that and if we're going to credit the finished goods then we're going to debit the expense related to us giving up the inventory that expense is finally called cost of goods sold so just like an merchandising company we're selling the inventory we're expensing it in the form of cost of goods sold so i'm going to copy the cost of goods sold i'm going to paste that in cell h16 right click paste 123 so we're going to have to get this information from of course the job cost sheet so this is the number that's going to come from the shop cost sheet the reduction in the inventory and the expensing of the cost of goods sold so we we sold job 14 let's scroll over to our job cost sheet and see what's in job 14 here it is i'm going to say now it's closed so i'm going to make it a different color again let's make it like blue maybe cool blue is closed so it's no longer here we're going to say it's closed or shipped it's been shipped meaning it's closed all right so now we have it over over there and the amount in there is the 186 so notice that at this point in time we're finally going to expense all the