Question

1.

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:

	a. Materials purchased on account, $29,800.
	b. Materials requisitioned and factory labor used:

Job	Materials	Factory Labor
301	$ 2,960	$2,775
302	3,620	3,750
303	2,400	1,875
304	8,100	6,860
305	5,100	5,250
306	3,750	3,340
For general factory use	1,080	4,100

	c. Factory overhead costs incurred on account, $5,500.
	d. Depreciation of machinery and equipment, $1,980.
	e. The factory overhead rate is $54 per machine hour. Machine hours used:

Job	Machine Hours
301	25
302	36
303	30
304	72
305	40
306	25
Total	228

	f. Jobs completed: 301, 302, 303 and 305.
	g. Jobs were shipped and customers were billed as follows: Job 301, $8,250; Job 302, $11,200; Job 303, $15,000.

	Required:
1.	Journalize the entries to record the summarized operations. Record each item (items a-f) as an individual entry on January 31. Record item g as 2 entries. Refer to the Chart of Accounts for exact wording of account titles.
2.	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.
3.	Prepare a schedule of unfinished jobs to support the balance in the work in process account.*
4.	Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.* *Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries.

CHART OF ACCOUNTS
Tybee Industries Inc.
General Ledger
ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 132 Work in Process 133 Factory Overhead 134 Finished Goods 141 Supplies 142 Prepaid Insurance 143 Prepaid Expenses 181 Land 191 Machinery and Equipment 192 Accumulated Depreciation-Machinery and Equipment LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 241 Lease Payable 251 Wages Payable 252 Consultant Fees Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary	REVENUE 410 Sales 610 Interest Revenue

Amount Descriptions
Job No. 301
Job No. 302
Job No. 303
Job No. 304
Job No. 305

Answer 1

	Direct	Direct	Overhead	total
Job	materials	labor	applied
301	2,960	2,775	1350	7,085
302	3,620	3,750	1944	9,314
303	2,400	1,875	1620	5,895
304	8,100	6,860	3888	18,848
305	5,100	5,250	2160	12,510
306	3,750	3,340	1350	8,440
total	25,930	23,850	12312	62,092
total cost of jobs completed
jobs
301			7,085
302			9,314
303			5,895
305			12,510
total cost of jobs completed			34,804
cost of jobs sold and sale price
jobs			COGS		Sale
301			7,085		8,250
302			9,314		11,200
303			5,895		15,000
total			22,294		34,450
1)	Journal Entries
	Account titles & Explanations				Debit	Credit
a)	Raw materials inventory				29,800
	Accounts payable					29,800
b)	Work in process inventory				49,780
	Factory overhead				5,180
	Raw materials invetory					27,010
	Factory wages payable					27,950
c)	Factory overhead				5,500
	accounts payable					5,500
d)	Factory overhead				1,980
	Accumulated depreciation					1,980
e)	work in process inventory				12312
	Factory overhead					12312
f)	finished goods inventory				34,804
	work in process inventory					34,804
g)	accounts receivable				34,450
	sales					34,450
	Cost of goods sold				22,294
	Finished goods inventory					22,294
2)	T-Account
	work in process inventory
	b)	49,780	f)	34,804
	e)	12312
	end bal	27,288
	finished goods inventory
	f)	34,804	g)	22,294
	end bal	12,510
3)	Schedule of unfinished jobs
		Direct	Direct	Overhead	total
	Job	materials	labor	applied
	304	8,100	6,860	3888	18,848
	306	3,750	3,340	1350	8,440
	total				27,288
4)	Schedule of finished jobs
		Direct	Direct	Overhead	total
	Job	materials	labor	applied
	305	5,100	5,250	2160	12,510