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, $2,700

Materials requisitioned and factory labor used:

Job No.MaterialsFactory Labor

101$2,660 $1,870

1023,250 2520

1032,150 1,230

1047,290 4,640

1054,630 3,530

1063,380 2,240

For general factory use900 2,770

Factory overhead costs incurred on account, $5,080.

Depreciation of machinery and equipment, $1,330.

The factory overhead rate is $70 per machine hour. Machine hours used:

Job No.Machine Hours

101 17

102 39

103 33

104 82

105 27

106 32

Total 230

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, $16,500.

Required:

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

EntriesDescriptionDebitCredit

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. SaleAccounts Receivable

Sales

    

g. CostCost 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

JobDirect MaterialsDirect LaborFactory OverheadTotal

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

JobDirect MaterialsDirect LaborFactory OverheadTotal

Finished Goods, April 30 (Job 103) $$$$

Answer 1

	Job101	Job102	Job103	Job105
Direct material	$2,660	$3,250	$2,150	$4,630
Direct labor	1,870	2,520	1,230	3,530
Factory overhead	1,190 (17*$70)	2,730 (39*$70)	2,310 (33*$70)	1,890 (27*$70)
Total	$5,720	$8,500	$5,690	$10,050

	General Journal	Debit	Credit
a	Materials	$2,700
	Accounts payable		$2,700
b	Work in process ($23,360+16,030)	$39,390
	Factory overhead (900+2,770)	3,670
	Materials (23,360+900)		$24,260
	Wages payable (16,030+2,770)		18,800
c	Factory overhead	$5,080
	Accounts payable		$5,080
d	Factory overhead	$1,330
	Accumulated depreciation-Machinery and Equipment		$1,330
e	Work in process (230*$70)	$16,100
	Factory overhead		$16,100
f	Finished goods ($5,720+8,500+5,690+10,050)	$29,960
	Work in process		$29,960
g	Accounts receivable ($8,390+12,110+16,500)	$37,000
	Sales		$37,000
	Cost of goods sold ($5,720+8,500+10,050)	$24,270
	Finished goods		$24,270

2.

Work in process				Finished Goods
Beg.bal	$0			Beg.bal	$0
b	39,390	$29,960	f	f	29,960	$24,270	g
e	16,100
End.bal	$25,530			End.bal	$5,690

3.

Hildreth Company Schedule of Unfinished Jobs
Job	Direct materials	Direct labor	Factory overhead	Total
No. 104	$7,290	$4,640	$5,740 (82*$70)	$17,670
No. 106	3,380	2,240	2,240 (32*$70)	7,860
Balance of work in process, April 30				$25,530

4.

Hildreth Company Schedule of Completed Jobs
Job	Direct materials	Direct labor	Factory overhead	Total
Finished Goods, April 30 (Job 103)	$2,150	$1,230	$2,310	$5,690