 In this presentation, we will enter a journal entry transferring the work in process account to the finished goods account for jobs that have been completed. We're going to enter that information into the general journal using the information on the left. First, a word from our sponsor. Well, actually, these are just items that we picked from the YouTube shopping affiliate program, but that's actually good for you because these aren't things that were just given to us from some large corporation which we don't even use in exchange for us selling them to you. These are things that we actually researched, purchased, and use ourselves. Bayer Dynamic? Not sure if I said that right, but this is the DT770 Pro 250 OHM Studio Reference Closed Back Headphones. I wear headphones basically every day for a large part of the day. They are important to me, therefore, I've gone through many different kinds of headphones. I've had these for some time, and they've worked quite well. 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You can purchase one at a time or have a subscription model, giving you access to all the courses, courses which are well organized, have other resources like Excel files and PDF files to download and no commercials. Then post from the general journal to the general ledger using the general ledger to create the trial balance. The trial balance is of course in order assets, then liabilities, then equity, income, and expenses. We are in balance, debits minus the credits equaling zero, currently having a loss of just that $380 in cost of goods sold at this time. Our goal now is going to be to determine which jobs have been completed. When we're done with the job, we've got to say at some point it's done now, and therefore it doesn't make any sense to be having it included in work and process anymore. So remember that this work and process account is being supported backed up by not only the GL but the jobs. All the jobs that we add together that are still open create this work and process account. Now we need to discuss the idea of a job that's been closed or been finished. So we're going to say now that well that some of these jobs are done. So we need to take it out of the work and process and transfer it to the finished goods. So how do we do that? Well, we're going to say that jobs 15, 16, and 17s are done. So let's go to our job call sheet over here. And I'm going to indicate that by saying I'm going to make these go from open to closed now. So I'm just going to say I'm going to highlight this and format this. So what I did was I'm going to format paint these highlight this format paint, and then make this the same. And then I'm going to make this part close. I'm just going to make this closed up top this time because I don't need to make that second one. So I'm going to make this like blue. We're going to say there's it's closed now. So this job 15, 16, and 17 have now been closed. So we just need to indicate that somewhere. It's not open anymore. It's been closed, meaning it shouldn't be in work and process. It should be supported by finished goods now. So this job call sheet is going to be supporting finished goods. So now what I'm going to do is I'm going to highlight this whole three cells. And I want to make this look the same and this look the same. So I'm going to highlight those and go to the format painter and then click on this item because job B 15 is closed. And then I'm going to do the same thing. I'm going to go to the format painter home tab format painter and click on this item because B 17 is closed. So those are the items that have been closed. Now, if I think of that in terms of a journal entry, then it should be this is what this job is consisting of and this and this. So if I take this hold down control this and and not that if I take this hold down control this and that those three jobs the totals for those three jobs that adds up to 8736. So that's what we need to transfer those three jobs that total amount representing the direct materials labor and overhead for those three jobs from work in process to finished goods. So we can do that with a journal entry pretty straightforward. I'm going to go back all the way to the left. And we're just going to say it's going to go from from the journal entry standpoint, it's pretty easy. Once we know the number, it's just going to be going out of this account, one inventory account, and it's going to go into the other inventory account. Again, we're just shuffling around. These are all inventory. They're all asset accounts. So the finished goods, then it's going to go up. It has a debit balance has all inventory accounts do and we're going to do the same thing to it increase it to increase it or debit it to increase it. So we'll right click and copy going to put that up top in B seven B seven right click and paste 123. And then I'm going to do this with a with a formula. So I'm going to say equals. And I'm going to scroll all the way to the right to our job sheets just so we can emphasize this. So when the job sheets and I'm going to say this cell plus this cell plus this cell and again, you could just type in the number we had here, or you can use this is here's the here's the account. So if you say enter, it's going to be that 8,736. Here's the formula that we have. It's going to be equal to AI, you could just type this in there AI 12 plus a O 12 plus AI 21. And that's picking up those cells or you can just type in the 8,736 for the reason we discussed, we just added up those three jobs. Then we're going to credit something for the same amount. I'm going to say negative of that number. And it's going to come out of work in process. So we'll copy work in process right click and copy. Put that in F eight, right click and paste 123. So here's our journal entry. We'll post this now. Here's the finished goods. Here's finished goods. So it's 12345 accounts down it looks like. So we'll scroll over to finished goods. There it is. So we are in s cell s eight. We're going to say equals scroll over to the finished goods. There it is and enter. So that's going to go up from zero by that 8,736 to 8,736. This account being used then to make the trial balance. We're out of balance by the 8,736 until we record the other side. So here's the work in process. Here's work in process. It's the fourth account. So we're going to go to the right looking for work in process. There it is. It's going to go out this time. So we're on the credit side in cell T 12. So within T 12, we'll say equals, scroll to the right, pick up that 8,736 and enter. So that brings the 13150 down by 8,736 to 4,014. That then being found, of course, on the trial balance. That'll put us back in balance. This journal entry had no effect on net income. Because again, all we did was say, well now it went from it was being worked on to it's done being worked on, but we haven't sold it yet. It hasn't left. So there we have that. Now note that we did something to work in process here. So we're going to have to go and make sure that we're supported by the jobs account. And we also did something to the finished goods. And we can think of that in the same way. We should have jobs because these haven't left us yet. They're still here. So we should have jobs that support both of these. So that's when we go back to our job sheets over here. That's when we've got all these jobs. We have to label them now as either open or closed and be able to somehow count the jobs that are open or closed. And this is where the job costs sheets get a little confusing. Because we're going to have to know, is it still open? Is it closed? If it's open, it should be supporting work and process. If it's closed, it should be supporting the finished goods. And if it's been shipped, then it's going to be out. It's going to be, it's going to have flown through costs to get sold at some point. And we can't track that as well, because it's a temporary account. So it's going to go away at some point after the month is over, that closes out. Okay, so what we need to do then is change our formula over here, because this one's adding up all the jobs, which we're all open. So what I'm going to do is just delete this. I'm going to say, well, the open jobs only consist of these two now, the ones that are still open. So I'm going to say this equals the green jobs, this one, and this one, those are the ones that are still open. And that should tie out to the work and process, the ones that are closed are the blue ones now, they're closed and they have not yet been shipped. So I'm going to delete this. And I'm going to say it should be equal to the total of this job, the total of this job, and the total of this job. So if we do that, we break them out between these two. I'm going to say that's all the blue ones, right? And so if we break them out, then we're going to say, okay, this is coming from these two accounts, and it's tying out to this number here. So this number work and process is supported by the GL here, and is also supported by our jobs, as long as we know which jobs to apply to the work and process versus the closed jobs. Also, this number represents the closed jobs. And that ties out to if we scroll back over the trial balance here for the finished goods, that number being supported by the general ledger account. And of course, also by our jobs over here, again, as long as we know which jobs to apply to work and process and which to apply to the finished goods.