production generated the following activity in Chopper Chassis Company's Work-in-Process Inventory account: LOADING...(Click the icon to view the activity.) Additionally, Chopper has completed Jobs 142 and 143, with total costs of $ 46 comma 000 and $ 50 comma 000, respectively. Read the requirementsLOADING Requirement 1. Prepare the journal entry for production completed in June. (Prepare a single journal entry for this event. Record debits first, then credits. Exclude explanations from any journal entries.) Date Accounts Debit Credit June C

Finished Goods : Job 142 $ 46,000 (debit)

Finished Goods : Job 143 $ 50,000 (debit)

Work In Process : Job 142 $ 46,000 (credit)

Work In Process : Job 143 $ 50,000 (credit)

Explanation:

During Production all Costs Incurred are accumulated in the Work In Process Account.

Once the Production is Complete and Jobs are Transferred to Finished Goods, the Costs in Work In Process Account is De-recognized. Consequently Costs are recognized in Finished Goods Inventory for Valuation purposes.

These cost would later form part of Cost of Sales when the Jobs are Finally Sold to the Customer.

Gross profit = $8,600

Gross profit percentage = increase by 37.39%

Explanation:

The formula to compute the gross profit is shown below:

= Sales revenue - the cost of goods sold

Or

= Sale value of merchandise - the cost of the merchandise

= $23,000 - $14,400

= $8,600

The computation of the gross profit percentage is shown below:

= (Gross profit ÷ Sales revenue) × 100

= ($8,600 ÷ $23,000) × 100

= 37.39%

Hence, the gross profit is increased by 37.39%