Question

1. 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, $1,890.
   2. Materials requisitioned and factory labor used:

      Job No.	Materials		Factory Labor
      101	$2,030		$2,240
      102	2,480		3,020
      103	1,640		1,480
      104	5,560		5,560
      105	3,530		4,230
      106	2,580		2,690
      For general factory use	690		3,320

   3. Factory overhead costs incurred on account, $3,880.
   4. Depreciation of machinery and equipment, $1,590.
   5. The factory overhead rate is $45 per machine hour. Machine hours used:

      Job No.	Machine Hours
      101		22
      102		34
      103		15
      104		67
      105		38
      106		37
      Total		213

   6. Jobs completed: 101, 102, 103, and 105.
   7. Jobs were shipped and customers were billed as follows: Job 101, $6,310; Job 102, $8,440; Job 105, $11,010.

   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
   (e)		(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 105)	$		$		$		$

Answer 1

Answer -

1. Answer -

Entries	Description	Debit	Credit
a.	Materials	$1890
	Accounts payable		$1890
b.	Work in process	$37040
	Factory overhead	$4010
	Materials		$18510
	Wages payable		$22540
c.	Factory overhead	$3880
	Accounts payable		$3880
d.	Factory overhead	$1590
	Accumulated depreciation-Machinery and equipment		$1590
e.	Work in process	$9585
	Factory overhead		$9585
f.	Finished goods	$25555
	Work in process		$25555
g. (Sale)	Accounts receivable	$25760
	Sales		$25760
g. (Cost)	Cost of goods sold	$21760
	Finished goods		$21760

Calculation:

Entry b:

Work in process:

= Total materials requisitioned + Total factory labor used

= [$2030 + $2480 + $1640 + $5560 + $3530 + $2580] + [$2240 + $3020 + $1480 + $5560 + $4230 + $2690]

= $17820 + $19220

= $37040

Factory overhead:

= Materials for general factory used + Factory labor for general factory used

= $690 + $3320

= $4010

Materials:

= Total materials requisitioned + Materials for general factory used

= $17820 + $690

= $18510

Wages payable:

= Total factory labor used + Factory labor for general factory used

= $19220 + $3320

= $22540

Entry e:

Factory overhead:

= Total machine-hours used * Factory overhead rate per machine-hour

= 213 machine-hours * $45 per machine-hour

= $9585

Entry f:

Here, Jobs completed are Job 101, Job 102, Job 103 and Job 105

Factory overhead:

Job 101 = Machine-hours used * Factory overhead rate per machine-hour

= 22 machine-hours * $45 per machine-hour = $990

Job 102 = Machine-hours used * Factory overhead rate per machine-hour

= 34 machine-hours * $45 per machine-hour = $1530

Job 103= Machine-hours used * Factory overhead rate per machine-hour

= 15 machine-hours * $45 per machine-hour = $675

Job 105= Machine-hours used * Factory overhead rate per machine-hour

= 38 machine-hours * $45 per machine-hour = $1710

Therefore,

Schedule of Completed Jobs
Job	Direct materials	Direct labor	Factory overhead	Total
101.	$2030	$2240	$990	$5260
102.	$2480	$3020	$1530	$7030
103.	$1640	$1480	$675	$3795
105.	$3530	$4230	$1710	$9470
Total				$25555

Entry g:

Jobs were shipped and customers were billed as follows: Job 101, $6310; Job 102, $8440; Job 105, $11010.

Therefore, sales revenue from Job 101, Job 102 and Job 103:

= $6310 + $8440 + $11010

= $25760

Cost of goods sold:

Job	Direct materials	Direct labor	Factory overhead	Total
101.	$2030	$2240	$990	$5260
102.	$2480	$3020	$1530	$7030
105.	$3530	$4230	$1710	$9470
Total				$21760

Factory overhead:

Job 101 = Machine-hours used * Factory overhead rate per machine-hour

= 22 machine-hours * $45 per machine-hour = $990

Job 102 = Machine-hours used * Factory overhead rate per machine-hour

= 34 machine-hours * $45 per machine-hour = $1530

Job 105= Machine-hours used * Factory overhead rate per machine-hour

= 38 machine-hours * $45 per machine-hour = $1710

2. Answer -

Work in process
b.	$37040	f.	$25555
e.	$9585
Balance	$21070

Calculation:

Balance = $37040 + $9585 - $25555 = $21070

Finished goods
f.	$25555	g.	$21760
Balance	$3795

Calculation:

Balance = $25555 - $21760 = $3795

3. Answer -

Hildreth Company
Schedule of Unfinished Jobs
Job	Direct materials	Direct labor	Factory overhead	Total
No. 104	$5560	$5560	$3015	$14135
No. 106	$2580	$2690	$1665	$6935
Balance of work in process, April 30				$21070

Factory overhead:

Job 104 = Machine-hours used * Factory overhead rate per machine-hour

= 67 machine-hours * $45 per machine-hour = $3015

Job 106 = Machine-hours used * Factory overhead rate per machine-hour

= 37 machine-hours * $45 per machine-hour = $1665

4. Answer -

Hildreth Company
Schedule of Completed Jobs
Job	Direct materials	Direct labor	Factory overhead	Total
Finished goods, April 30 (Job 105)	$3530	$4230	$1710	$9470

Calculation:

Factory overhead:

Job 105= Machine-hours used * Factory overhead rate per machine-hour

= 38 machine-hours * $45 per machine-hour = $1710