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:

Materials purchased on account, $2,270.

Materials requisitioned and factory labor used:

Job No.	Materials		Factory Labor
101	$3,240		$2,750
102	3,950		3,710
103	2,620		1,820
104	8,880		6,820
105	5,640		5,200
106	4,110		3,300
For general factory use	1,100		4,070

c.Factory overhead costs incurred on account, $6,190.

d.Depreciation of machinery and equipment, $1,950.

e.The factory overhead rate is $65 per machine hour. Machine hours used:

Job No.	Machine Hours
101		26
102		18
103		35
104		70
105		34
106		28
Total		211

f. Jobs completed: 101, 102, 103, and 105.

g. Jobs were shipped and customers were billed as follows: Job 101, $9,220; Job 102, $10,600; Job 105, $19,470.

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.

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.

Answer 1

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1. Journal Entries
Date/Event	Account	Debit	Credit
a	Raw material Inventory	$     22,700
	Accounts Payable		$           22,700
	(to record purchase of raw material)
	(it can not be 2,270 as requistion is more, hence assumed it 22,700)
b	Work in Process	$     52,040
	Factory Overhead	$       5,170		1100+4070
	Raw material Inventory		$           29,540
	Wages Payable		$           27,670
	(to record material and labor usage)
c	Factory Overhead	$       6,190
	Accounts Payable		$             6,190
	(to record factory overhead incurred)
d	Factory Overhead	$       1,950
	Accumulated Depreciation		$             1,950
	(to record depreciation incurred)
e	Work in Process	$     13,715
	Factory Overhead		$           13,715
	(to record applied overhead) 211*65
f	Finished Goods Inventory (See working)	$     36,275
	Work in Process		$           36,275
	(to record completion of jobs)
g	Accounts Receivable	$     39,290
	Sale		$           39,290
	(to record sale)
	Cost of Goods Sold	$     29,560
	Finished Goods Inventory		$           29,560
	(to record COGS) 7680+8830+13050
2. Ledger
		Work in Process
		Debit		Credit
		b	$           52,040	f	$              36,275
		e	$           13,715
		Ending	$           29,480
		Finished Goods in Process
		Debit		Credit
		f	$           36,275	g	$              29,560
		Ending	$             6,715
3. Unfinished Goods Schedule
		Job 104	Job 106	Total
	Direct Material	$       8,880	$             6,820	$                       15,700
	Direct Labor	$       4,110	$             3,300	$                         7,410
	Factory Overhead	$       4,550	$             1,820	$                         6,370
	65*70 and 65*28
		$     17,540	$           11,940	$                       29,480
4.Completed Jobs on hands Schedule
		Job 103
	Direct Material	$       2,620
	Direct Labor	$       1,820
	Factory Overhead 65*35	$       2,275
		$       6,715
Working for "f"
Job No.	Materials	Factory Labor	Overhead (65*MH)	Total Cost	Machine Hours
101	$                                                                                                                              3,240	$       2,750	$             1,690	$                         7,680	26
102	$                                                                                                                              3,950	$       3,710	$             1,170	$                         8,830	18
103	$                                                                                                                              2,620	$       1,820	$             2,275	$                         6,715	35
105	$                                                                                                                              5,640	$       5,200	$             2,210	$                       13,050	34
Total	$                                                                                                                            15,450	$     13,480	$             7,345	$                       36,275
				Total Cost