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, $2,080.
2. Materials requisitioned and factory labor used:
   

   Job No.	Materials		Factory Labor
   101	$1,800		$2,940
   102	2,200		3,970
   103	1,460		1,940
   104	4,930		7,290
   105	3,130		5,560
   106	2,290		3,530
   For general factory use	610		4,350

3. Factory overhead costs incurred on account, $3,440.
4. Depreciation of machinery and equipment, $2,090.
5. The factory overhead rate is $40 per machine hour. Machine hours used:
   

   Job No.	Machine Hours
   101		43
   102		18
   103		27
   104		70
   105		45
   106		29
   Total		232

6. Jobs completed: 101, 102, 103, and 105.
7. Jobs were shipped and customers were billed as follows: Job 101, $7,750; Job 102, $8,270; Job 105, $12,990.

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

1	Particulars	Debit	Credit
a)	Material	2080
	Accounts payable		2080
b)	Work in process	41040
	Factory overheads	4960
	Material		16420
	Wages payable		29580
c)	Factory overheads	3440
	Accounts payable		3440
d)	Factory overheads	2090
	Accumulated depreciation Machinery and equipment	2090
e)	Work in process	9280		(232*40)
	Factory overheads		9280
f)	Finished goods	28320
	Work in process		28320
g) sales	Accounts receivable	29010
	Sales		29010	33490
g) cost	Cost of goods sold	23840
	Finished goods		23840
2	T accounts
		Work in process
	b)	41040	28320	f)
	e)	9280
	Bal	22000
		Finished goods
	f)	28320	23840	g)
	Bal	4480
3	Jobs	Direct Material	Direct labor	Factory overheads	Total
	No. 104	4930	7290	2800	15020
	No. 106	2290	3530	1160	6980
	Balance of work in process April 30				22000
4	Jobs	Direct Material	Direct labor	Factory overheads	Total
	No. 103	1460	1940	1080	4480
	Balance of work in process April 30
	Jobs	Direct Material	Direct labor	Factory overheads	Total
	No. 101	1800	2940	1720	6460
	No. 102	2200	3970	720	6890
	No. 103	1460	1940	1080	4480
	No. 104	4930	7290	2800	15020
	No. 105	3130	5560	1800	10490
	No. 106	2290	3530	1160	6980