Exporting Transactions-Journal Entries
Jung Farms Exports Wheat to Germany

question 41

Essay

Exporting transactions-journal entries
Jung Farms exports wheat to Germany. In the space provided below, prepare journal entries to record the following events.
Nov. 15, 2010: Sold wheat to a German restaurant chain at a price of 2 million euros, due in 90 days. The current exchange rate is $0.80 U.S. dollars per euro. (Jung uses the periodic inventory method.)
Dec. 3, 2010: Jung made a year-end adjusting entry relating to the account receivable from the German restaurant chain. The exchange rate at year-end is $0.85 U.S. dollars per Euro.
Feb. 15, 2011: Received a check for $1,640,000 from the InterContinental Bank in full settlement of the receivable from the German restaurant chain. The exchange rate at this date is $0.82 U.S. dollars per euro.
$\begin{array}{|c|l|c|c|}\hline \text {2010}&\text { General Journal }&\quad\quad\quad\quad&\quad\quad\quad\quad\\\hline \text { Nov. } 15 && \\\hline \\\hline \\\hline\\\hline \text { Dec, } 31 & \\\hline \\\hline \\\hline \\\hline 2011 & & & \\\hline \text { Feb. } 15 & \\\hline & \\\hline & \\\hline\\\hline\end{array}$

---

Definitions:

Manufacturing Overhead Applied

The portion of manufacturing overhead costs assigned to individual cost objects based on a predetermined rate or method.

Total Manufacturing Costs

The sum of all costs directly involved in the production of goods, including raw materials, labor, and overhead.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated before the period begins based on estimated costs and activity levels.

Work in Process Inventory

is the account for materials and labor costs for products that are in the process of being manufactured but are not yet complete.