 times 0.3 and that's the amount of revenue we're making Plus the original cost three eight two zero is the four nine six six. So that would be for this job What we would charge if we had a 30% markup the other way we can do it is we could say okay if it was three eight two zero times one hundred percent is one point three one hundred and thirty percent one one point three one hundred and thirty percent and we'll get to that same four nine six six So that's one way we can do it. Remember that these sheets here could look kind of like invoices if we're thinking about Billing the client on a construction or a project or any kind of custom project They're not necessarily an invoice because this is tracking the cost. This gives us the cost But that could be a starting point on which we derive our invoice We might tell our clients exactly what it cost and then tell them that we're gonna have a markup That's a very nice transparent way To to present an invoice but we might not do it that way We might come up with a cost in some other another kind of format an invoice in some other kind of way But a construction job often the invoice will be similar to this and many kind of of custom jobs You might use the actual costs as the jobs And then mark it up and the I think that's as transparent as you can be To to basically do that. So if we did that for both of them, then we'd say well the two jobs add up to 3820 plus the 2790 in between the two of them, we're gonna have a 30 markup So times 1.3 130 percent is the 8593 So that's what we're gonna have. So another way we can look at it is if we highlight this number in this number 6610 That of course I'm going to scroll all the way to the left scrolling all the way to the left is this number So I can just take that number multiply it times the 30 30 markup. So what let's do that here. I'll be in G 10 equals this 6610 times 1.3 at 30 markup So then the sales is going to be 8593. That's what we're going to invoice the client for In a credit of the same So so again this whole problem whenever you work these problems, we're always focused on inventory and then this Number kind of gets lost even though that's usually the main thing we focus on when we sell merchandise and and and any kind of merchandise and manufacturing or or non manufacturing but It gets lost when we when we spend the whole time period and focusing on tracking the costs So and it could be derived from the cost, but it doesn't necessarily have to all right So let's post this out now. So here's going to be our journal entry and again this journal entry. I'm going to make it green just so we can Focus on one at a time. So I'll right click on it make it green Let's make it that green. So now I know which one I'm working on so I don't get mixed up All right, so now we're going to post this out and these two should look familiar now because this is our normal Kind of journal entries the new thing is where do we get the numbers from the job cost sheets? All right, here's the counts receivable. Here's the counts receivable our second favorite account It's our second account on the gl Here it is in o 19 We're going to say equals Point to that 8593 The 180 goes up by 8593 to 188 593 That then can be found on the trial balance We're out of balance by the 8593 Then we're going to go to sales that's going to be way down here on the income statement same order on the general ledger So I'm going to go all the way to the right So we're going to go to the right Here's sales. It's going to be on the credit side. So I'm in ab 13 ab 13 equals I'm going to scroll all the way to the left And I'm going to pick up that green one. We're working on the sales item and enter So it goes from zero up in the credit direction by 8593 to 8593 And I'm going to and that number of course is found on the trial balance And that brings up net income. So we're back in balance Net income is increased by that. So this isn't a loss. This is income Credits are beating the debits revenue minus expenses credits minus the debits Now we're going to record the other one. So I'm going to highlight these I'm going to make them that blue again right click Here's the bucket I'm using that blue if you can't find it there. It's in this little color wheel And then go to standard and it's that one right there and enter And then this one's the last one. So I don't need to make it green because we're working on the last one And then here's the cost of goods sold. So that's the first one. We'll record cost of goods sold Last account second to last account. So we're going to go all the way to the right And we're going to be here in a a 19 I'm going to say equals scroll to the left Pick up that cost of goods sold and enter So there it goes up from that 380 by 6602 6 990 That then Is found on the Trial balance So now it went up by the 8690 and then and then we had an expense of the investment inventory bringing the the net income now at the 1603 And then we'll record the cost of goods sold So here's I'm sorry. We just did that then we'll record the finished inventory. So here's inventory Here's the finished goods inventory So finished goods inventory is right there So we'll be in cell t 19 Within t 19 we're going to say equals Point to that 6610 it's going to bring the 8736 down by 66102 2126 that then Also found on the trial balance here Puts us back in balance And there we have it. So that should be kind of like our normal Kind of sales journal entry whenever we sell merchandise Now we need to go back and make sure that these accounts are Correct because remember we now did something to the Finished goods account So we're going to have to adjust our worksheet to make sure that this number should be supported in other words Here's finished goods here. It went down It's supported by the gl we need to make sure it's supported by The worksheets our jobs. So if we go back to the jobs We're going to say okay These numbers are okay because we didn't do anything to work in process So so the work in process accounts Are the open ones are still good The finished goods however are not now because we changed the color But not the formula. We're going to say, okay These we're adding up these three Now the work in process. I'm going to delete that Or that I'm sorry that finished goods is only equal to This one that's the only one that's still finished Enter these two yellow ones. I'm not going to add up I mean we could add them up and say, okay, those add up to 6610 and if I go to the left That's what that's what's in or that's what we posted to cost to get sold But you'll note it won't always be exact because this is a temporary account and it's going to flow out to retained earnings So of course over time we're going to have they're all going to be shipped at some point in time And but they'll all be closed out to cost to get sold and they'll all be closed out eventually to retained earnings These two of course are on the balance sheet, which are permanent And so uh, we'll be able to tie these out. So These these two of course are still work in process which is supported by This amount on the trial balance. So if we go to the trial balance, there's the work in process It's supported by the work in process gl As well as the jobs as long as we've got them properly allocated And then the closed jobs consist of just this one it's on The it's going to be on the gl So here's the gl And that gl account is supported not only by the uh, the I'm sorry. Here's the trial balance It's supported not only by the gl But it's also supported by the jobs here and that's the one that hasn't been shipped And then these two are shipped and they're basically gone to the temporary account They're now on the income statement in the form of cost of goods sold