Question

Entries and Schedules for Unfinished Jobs and Completed Jobs

Tybee Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations:

1. Materials purchased on account, $1,990.
2. Materials requisitioned and factory labor used:
   

   Job	Materials		Factory Labor
   301	$3,290		$3,020
   302	4,010		4,080
   303	2,660		1,990
   304	9,010		7,490
   305	5,720		5,710
   306	4,180		3,620
   For general factory use	1,120		4,470

3. Factory overhead costs incurred on account, $6,280.
4. Depreciation of machinery and equipment, $2,140.
5. The factory overhead rate is $50 per machine hour. Machine hours used:
   

   Job	Machine Hours
   301		40
   302		18
   303		45
   304		69
   305		17
   306		20
   Total		209

6. Jobs completed: 301, 302, 303, and 305.
7. Jobs were shipped and customers were billed as follows: Job 301, $9,970; Job 302, $10,790; Job 303, $20,010.

Required:

1. Journalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank.

. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month.

Work in Process
Bal.

Finished Goods
Bal.

3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.

Tybee Industries Inc. Schedule of Unfinished Jobs
Job	Direct Materials		Direct Labor		Factory Overhead		Total
	$		$		$		$
Balance of Work in Process, January 30							$

4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.

Tybee Industries Inc. Schedule of Completed Jobs
Job	Direct Materials		Direct Labor		Factory Overhead		Total
	$		$		$		$

Answer 1

Job sheet		301	302	303	304	305	306	total
direct materials	3290	4010	2660	9010	5720	4180	28870
Direct labor	3020	4080	1990	7490	5710	3620	25910
overhead applied	2000	900	2250	3450	850	1000	10450
total		8310	8990	6900	19950	12280	8800	65230
		finished	finished	finished	WIP	finished	WIP
		sold	sold	sold
Journal entries
no	Accounting titles and Explanations	Debit	Credit
a.	Raw materials inventory		1990
	accounts payable				1990
b	Work in process			54780		(28870+25910)
	Factory overhead			5590		(1060+4040)
	Raw materials inventory			29990	(28870+1120)
	Factory wages payable			30380	(25910+4470)
c	Factory overhead			6280
	accounts payable				6280
d.	Factory overhead			2140
	Accumulated depreciation			2140
e.	Work in process inventory		10450
	Factory overhead				10450
f.	finished goods			36480		(8310+8990+6900+12280)
	Work in process inventory			36480
g	Accounts receivable			40770
	sales					40770
	cost of goods sold			24200		(8310+8990+6900)
	Finished goods inventory			24200
b)	T- Account
	Work in process inventory			finished goods inventory
	b	54780	f	36480		f.	36480	g	24200
	e	10450
	end	32230				end	12280
c)	Schedule of unfinished jobs
	job	DM	DL	overhead	total
	304	9010	7490	3450	19950
	305	5720	5710	850	12280
	total				32230