Question

In: Accounting

1. Tybee Industries Inc. uses a job order cost system. The following data summarize the operations...

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

Solutions

Expert Solution

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

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