Question

Entries and Schedules for Unfinished Jobs and Completed Jobs

Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations:

1. Materials purchased on account, $3,180.
2. Materials requisitioned and factory labor used:
   

   Job No.	Materials		Factory Labor
   101	$2,610		$2,520
   102	3,180		3,400
   103	2,110		1,660
   104	7,150		6,250
   105	4,540		4,760
   106	3,310		3,020
   For general factory use	890		3,730

3. Factory overhead costs incurred on account, $4,990.
4. Depreciation of machinery and equipment, $1,790.
5. The factory overhead rate is $50 per machine hour. Machine hours used:
   

   Job No.	Machine Hours
   101		24
   102		18
   103		27
   104		73
   105		21
   106		22
   Total		185

6. Jobs completed: 101, 102, 103, and 105.
7. Jobs were shipped and customers were billed as follows: Job 101, $7,600; Job 102, $8,980; Job 105, $14,850.

Required:

1. Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank.

Entries	Description	Debit	Credit
a.	Materials
	Accounts Payable
b.	Work in Process
	Factory Overhead
	Materials
	Wages Payable
c.	Factory Overhead
	Accounts Payable
d.	Factory Overhead
	Accumulated Depreciation-Machinery and Equipment
e.	Work in Process
	Factory Overhead
f.	Finished Goods
	Work in Process
g. Sale	Accounts Receivable
	Sales
g. Cost	Cost of Goods Sold
	Finished Goods

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.

Work in Process
(b)		(f)
(e)
Bal.

Finished Goods
(f)		(g)
Bal.

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

Hildreth Company Schedule of Unfinished Jobs
Job	Direct Materials		Direct Labor		Factory Overhead		Total
No. 104	$		$		$		$
No. 106
Balance of Work in Process, April 30							$

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

Hildreth Company Schedule of Completed Jobs
Job	Direct Materials		Direct Labor		Factory Overhead		Total
Finished Goods, April 30 (Job 103)	$		$		$		$

Answer 1

Job No.	Material	Labor	Overhead	Total
101	$    2,610	$    2,520	$     1,200	$   6,330
102	$    3,180	$    3,400	$         900	$   7,480
103	$    2,110	$    1,660	$     1,350	$   5,120
104	$    7,150	$    6,250	$     3,650	$ 17,050
105	$    4,540	$    4,760	$     1,050	$ 10,350
106	$    3,310	$    3,020	$     1,100	$   7,430
Total	$ 22,900	$ 21,610	$     9,250	$ 53,760

1.

	Account Titles	Debit	Credit
a	Raw Material Inventory	$         3,180
	Accounts Payable		$         3,180
b	Work in Process Inventory	$      22,900
	Manufacturing Overhead	$            890
	Raw Material Inventory		$      23,790
c	Manufacturing Overhead	$         4,990
	Accounts Payable		$         4,990
d	Manufacturing Overhead	$         1,790
	Accumulated Depreciation		$         1,790
e	Work in Process Inventory	$         9,250
	Manufacturing Overhead		$         9,250
f	Finished Goods Inventory	$      29,280
	Work in Process Inventory		$      29,280
g	Accounts Receivable	$      31,430
	Sales Revenue		$      31,430
	Cost of Goods Sold	$      24,160
	Finished Goods Inventory		$      24,160

2.

Work in Process Inventory
Material	$ 22,900	$ 29,280	Finished Goods
Labor	$ 21,610
Overhead	$    9,250
Bal	$ 24,480
Finished Goods Inventory
Work in Process	$ 29,280	$ 24,160	Cost of Goods Sold
Bal	$    5,120

3.

Job No.	Material	Labor	Overhead	Total
104	$    7,150	$    6,250	$    3,650	$ 17,050
106	$    3,310	$    3,020	$    1,100	$   7,430
Balance of Work in Process, April 30				$ 24,480

4.

Job No.	Material	Labor	Overhead	Total
103	$    2,110	$    1,660	$    1,350	$   5,120
Finished Goods, April 30				$   5,120