Question

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:

	a. Materials purchased on account, $30,100.
	b. Materials requisitioned and factory labor used:

Job	Materials	Factory Labor
301	$3,110	$2,720
302	3,710	3,810
303	2,400	1,970
304	8,500	6,870
305	5,210	5,410
306	3,850	3,290
For general factory use	1,080	4,120

	c. Factory overhead costs incurred on account, $5,440.
	d. Depreciation of machinery and equipment, $1,980.
	e. The factory overhead rate is $53 per machine hour. Machine hours used:

Job	Machine Hours
301	25
302	35
303	32
304	73
305	38
306	24
Total	227

	f. Jobs completed: 301, 302, 303 and 305.
	g. Jobs were shipped and customers were billed as follows: Job 301, $7,990; Job 302, $10,960; Job 303, $14,290.

	Required:
1.	Journalize the entries to record the summarized operations. Record each item (items a-f) as an individual entry on January 31. Record item g as 2 entries. Refer to the Chart of Accounts for exact wording of account titles.
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.
3.	Prepare a schedule of unfinished jobs to support the balance in the work in process account.*
4.	Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.* * Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries. Amount Descriptions Job No. 301 Job No. 302 Job No. 303 Job No. 304 Job No. 305 Job No. 306 . Journalize the entries to record the summarized operations. Record each item (items a-f) as an individual entry on January 31. Record item g as 2 entries. Refer to the Chart of Accounts for exact wording of account titles. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 T Accounts 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 c Bal. Finished Goods Bal. Schedule of Unfinished Jobs 3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries. Tybee Industries Inc. Schedule of Unfinished Jobs 1 Job Direct Materials Direct Labor Factory Overhead Total 2 3 4 Balance of Work in Process, January 30 Schedule of Completed Jobs 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account. Refer to the list of Amount Descriptions list for the exact wording of the answer choices for text entries. Tybee Industries Inc. Schedule of Completed Jobs 1 Job Direct Materials Direct Labor Factory Overhead Total 2

Answer 1

	Direct	Direct	Overhead	total
Job	materials	labor	applied
301	3,110	2,720	1325	7,155
302	3,710	3,810	1855	9,375
303	2,400	1,970	1696	6,066
304	8,500	6,870	3869	19,239
305	5,210	5,410	2014	12,634
306	3,850	3,290	1272	8,412
total	26,780	24,070	12031	62,881
total cost of jobs completed
jobs
301			7,155
302			9,375
303			6,066
305			12,634
total cost of jobs completed			35,230
cost of jobs sold and sale price
jobs			COGS		Sale
301			7,155		7,990
302			9,375		10,960
303			6,066		14,290
total			22,596		33,240
1)	Journal Entries
	Account titles & Explanations				Debit	Credit
a)	Raw materials inventory				30,100
	Accounts payable					30,100
b)	Work in process inventory				50,850
	Factory overhead				5,200
	Raw materials invetory					27,860
	Factory wages payable					28,190
c)	Factory overhead				5,440
	accounts payable					5,440
d)	Factory overhead				1,980
	Accumulated depreciation					1,980
e)	work in process inventory				12031
	Factory overhead					12031
f)	finished goods inventory				35,230
	work in process inventory					35,230
g)	accounts receivable				33,240
	sales					33,240
	Cost of goods sold				22,596
	Finished goods inventory					22,596
2)	T-Account
	work in process inventory
	b)	50,850	f)	35,230
	e)	12031
	end bal	27,651
	(note entry b includes DM and DL
	if required u can show separately)
	finished goods inventory
	f)	35,230	g)	22,596
	end bal	12,634
3)	Schedule of unfinished jobs
		Direct	Direct	Overhead	total
	Job	materials	labor	applied
	304	8,500	6,870	3869	19,239
	306	3,850	3,290	1272	8,412
	total				27,651
4)	Schedule of finished jobs
		Direct	Direct	Overhead	total
	Job	materials	labor	applied
	305	5,210	5,410	2014	12,634