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:

Materials purchased on account, $2,920.

Materials requisitioned and factory labor used:

Job No.MaterialsFactory Labor

101$2,850 $2,940

1023,480 3,970

1032,310 1,940

1047,810 7,290

1054,960 5,560

1063,620 3,530

For general factory use970 4,350

Factory overhead costs incurred on account, $5,440.

Depreciation of machinery and equipment, $2,090.

The factory overhead rate is $60 per machine hour. Machine hours used:

Job No.Machine Hours

101 20

102 44

103 35

104 78

105 23

106 38

Total 238

Jobs completed: 101, 102, 103, and 105.

Jobs were shipped and customers were billed as follows: Job 101, $8,390; Job 102, $12,110; Job 105, $18,420.

Required:

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

EntriesDescriptionDebitCredit

a.

  

    

b.

  

  

  

    

c.

  

    

d.

  

    

e.

  

    

f.

  

    

g. Sale

  

    

g. Cost

  

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

  

   

Bal.  

Finished Goods

  

Bal.  

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

Hildreth Company
Schedule of Unfinished Jobs

JobDirect MaterialsDirect LaborFactory OverheadTotal

$$$$

     

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

JobDirect MaterialsDirect LaborFactory OverheadTotal

$$$$

Answer 1

ANSWER:

Required 1) Journal Entries:

Entries	Particulars	Debit	Credit
a	Materials Inventory	2,920
	To Accounts Payable		2,920
	(To record materials purchased on account)
b	Work in Process (WN 1)	50,260
	Factory Overhead (WN 1)	5,320
	To Materials (WN 1)		26,000
	To Wages Payable (WN 1)		29,580
	(To record use of material and labor)
c	Factory Overhead	5,440
	To Accounts Payable		5,440
	(To record factory overhead incurred)
d	Factory Overhead	2,090
	To Accumulated Depreciation - Machinery and Equipment		2,090
	(To record depreciation expenses)
e	Work in process (238 * 60)	14,280
	To Factory Overhead		14,280
	(To factory overhead applied)
f	Finished goods (WN 2)	35,330
	To Work in Process		35,330
	(To record completion of jobs)
g	Accounts Receivable (8,390 + 12,110 + 18,420)	38,920
	To Sales		38,920
	(To record sales)
h	Cost of goods sold (WN 3)	28,980
	To Finished Goods		28,980
	(To record cost of goods sold)

Working Notes:

WN 1) Cost of materials and Wages used

Job no.	Materials	Factory Labor
101	2,850	2,940
102	3,480	3,970
103	2,310	1,940
104	7,810	7,290
105	4,960	5,560
106	3,620	3,530
Total	25,030	25,230

Total Material and Factory labor used in work in process = $25,030 + $25,230 = $50,260

General use of Materials and factory labor = $970 + $4,350 = $5,320

Total Materials used = $25,030 + $970 = $26,000

Total Factory labor used = $25,230 + $4,350 = $29,580

WN 2) Cost of completed jobs

Job no.	Materials	Factory Labor	Overhead	Total
101	2,850	2,940	1,200	6,990
102	3,480	3,970	2,640	10,090
103	2,310	1,940	2,100	6,350
105	4,960	5,560	1,380	11,900
Total	13,600	14,410	7,320	35,330

Calculation of Overhead Applied

Overhead Applied	Machine Hours	Rate per hour	Overhead applied
Job no.	(A)	(B)	(A * B)
101	20	60	1,200
102	44	60	2,640
103	35	60	2,100
105	23	60	1,380

WN 3) Cost of goods sold

Job no.	Total Costs
101	6,990
102	10,090
105	11,900
Total cost of goods sold	28,980

Required 2)

Work in Process

b	50,260	f	35,330
e	14,280	bal	29,210
	64,540		64,540

Finished Goods

f	35,330	g	38,920
bal	3,590
	38,920		38,920

Required 3)

Hildreth Company

Schedule of Unfinished Jobs

Job no.	Direct Materials	Direct Labor	Factory Overhead	Total
104	7,810	7,290	4,680	19,780
106	3,620	3,530	2,280	9,430
Balance of Work in Process, April 30	29,210

Calculation of Overhead Applied

Overhead Applied	Machine Hours	Rate per hour	Overhead applied
Job no.	(A)	(B)	(A * B)
104	78	60	4,680
106	38	60	2,280

Required 4)

Hildreth Company

Schedule of Completed Jobs

Job no.	Direct Materials	Direct Labor	Factory Overhead	Total
Finished Goods, April 30 (Job 103)	2,310	1,940	2,100	6,350
Balance of finished goods, April 30	6,350