Question

Entries and Schedules for Unfinished Jobs and Completed Jobs

Tybee Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations:

1. Materials purchased on account, $3,330.
2. Materials requisitioned and factory labor used:
   

   Job	Materials		Factory Labor
   301	$2,200		$1,830
   302	2,680		2,470
   303	1,780		1,210
   304	6,030		4,540
   305	3,830		3,460
   306	2,790		2,200
   For general factory use	750		2,710

3. Factory overhead costs incurred on account, $4,200.
4. Depreciation of machinery and equipment, $1,300.
5. The factory overhead rate is $40 per machine hour. Machine hours used:
   

   Job	Machine Hours
   301		15
   302		37
   303		16
   304		74
   305		22
   306		37
   Total		201

6. Jobs completed: 301, 302, 303, and 305.
7. Jobs were shipped and customers were billed as follows: Job 301, $5,560; Job 302, $7,960; Job 303, $10,530.

Required:

1. Journalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank.

Entries	Description	Debit	Credit
a.
b.
c.
d.
e.
f.
g.

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.

Tybee Industries Inc. Schedule of Unfinished Jobs
Job	Direct Materials		Direct Labor		Factory Overhead		Total
	$		$		$		$
Balance of Work in Process, January 30							$

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

Tybee Industries Inc. Schedule of Completed Jobs
Job	Direct Materials		Direct Labor		Factory Overhead		Total
	$		$		$		$

Answer 1

	Direct	Direct	Overhead	total
Job	materials	labor	applied
301	2,200	1,830	600	4,630
302	2,680	2,470	1480	6,630
303	1,780	1,210	640	3,630
304	6,030	4,540	2960	13,530
305	3,830	3,460	880	8,170
306	2,790	2,200	1480	6,470
total	19,310	15,710	8040	43,060
total cost of jobs completed
jobs
301			4,630
302			6,630
303			3,630
305			8,170
total cost of jobs completed			23,060
cost of jobs sold and sale price
jobs			COGS		Sale
301			4,630		5,560
302			6,630		7,960
303			3,630		10,530
total			14,890		24,050
1)	Journal Entries
	Account titles & Explanations				Debit	Credit
a)	Raw materials inventory				3,330
	Accounts payable					3,330
b)	Work in process inventory				35,020
	Factory overhead				3,460
	Raw materials invetory					20,060
	Factory wages payable					18,420
c)	Factory overhead				4,200
	accounts payable					4,200
d)	Factory overhead				1,300
	Accumulated depreciation					1,300
e)	work in process inventory				8040
	Factory overhead					8040
f)	finished goods inventory				23,060
	work in process inventory					23,060
g)	accounts receivable				24,050
	sales					24,050
	Cost of goods sold				14,890
	Finished goods inventory					14,890
2)	T-Account
	work in process inventory
	b)	35,020	f)	23,060
	e)	8040
	end bal	20,000
	finished goods inventory
	f)	23,060	g)	14,890
	end bal	8,170
3)	Schedule of unfinished jobs
		Direct	Direct	Overhead	total
	Job	materials	labor	applied
	304	6,030	4,540	2960	13,530
	306	2,790	2,200	1480	6,470
	total				20,000
4)	Schedule of finished jobs
		Direct	Direct	Overhead	total
	Job	materials	labor	applied
	305	3,830	3,460	880	8,170