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, $3,400.
2. Materials requisitioned and factory labor used:
   

   Job No.	Materials		Factory Labor
   101	$2,750		$2,690
   102	3,360		3,630
   103	2,230		1,780
   104	7,540		6,670
   105	4,790		5,080
   106	3,490		3,230
   For general factory use	940		3,980

3. Factory overhead costs incurred on account, $5,250.
4. Depreciation of machinery and equipment, $1,910.
5. The factory overhead rate is $70 per machine hour. Machine hours used:
   

   Job No.	Machine Hours
   101		34
   102		31
   103		17
   104		82
   105		22
   106		28
   Total		214

6. Jobs completed: 101, 102, 103, and 105.
7. Jobs were shipped and customers were billed as follows: Job 101, $9,380; Job 102, $10,990; Job 105, $15,080.

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

	General Journal	Debit	Credit
a	Materials	$3,400
	Accounts payable		$3,400
b	Work in process ($24,160+23,080)	$47,240
	Factory overhead (940+3,980)	4,920
	Materials		$25,100
	Wages payable		27,060
c	Factory overhead	$5,250
	Accounts payable		$5,250
d	Factory overhead	$1,910
	Accumulated depreciation-Machinery and Equipment		$1,910
e	Work in process (214*$70)	$14,980
	Factory overhead		$14,980
f	Finished goods ($7,820+9,160+5,200+11,410)	$33,590
	Work in process		$33,590
g	Accounts receivable	$35,450
	Sale		$35,450
	Cost of goods sold ($7,820+9,160+11,410)	$28,390
	Finished goods		$28,390

	Job101	Job102	Job103	Job105
Direct material	$2,750	$3,360	$2,230	$4,790
Direct labor	2,690	3,630	1,780	5,080
Factory overhead	2,380 (34*$70)	2,170 (31*$70)	1,190 (17*$70)	1,540 (22*$70)
Total costs	$7,820	$9,160	$5,200	$11,410

2.

Work in process				Finished Goods
Beg.bal	$0			Beg.bal	$0
b	47,240	$33,590	f	f	33,590	$28,390	g
e	14,980
				End.bal	$5,200
End.bal	$28,630

3.

Hildreth Company Schedule of Unfinished Jobs
Job	Direct material	Direct labor	Factory overhead	Total
104	$7,540	$6,670	$5,740 (82*$70)	$19,950
106	3,490	3,230	1,960 (28*$70)	8,680
Balance of work in process, April 30				$28,630

4.

Hildreth Company Schedule of Unfinished Jobs
Job	Direct material	Direct labor	Factory overhead	Total
Finished goods, April 30 (Job 103)	$2,230	$1,780	$1,190	$5,200