Question

Chapter 19 homework Hide or show questions eBookCalculator 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: Materials purchased on account, $3,140. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $2,490 $2,730 302 3,040 3,690 303 2,020 1,800 304 6,820 6,770 305 4,330 5,160 306 3,160 3,280 For general factory use 850 4,040 Factory overhead costs incurred on account, $4,760. Depreciation of machinery and equipment, $1,940. The factory overhead rate is $35 per machine hour. Machine hours used: Job Machine Hours 301 27 302 40 303 27 304 68 305 24 306 15 Total 201 Jobs completed: 301, 302, 303, and 305. Jobs were shipped and customers were billed as follows: Job 301, $7,400; Job 302, $9,760; Job 303, $13,820. 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

		Direct	Direct	Overhead	total
	Job	materials	labor	applied
	301	2,490	2,730	945	6,165
	302	3,040	3,690	1400	8,130
	303	2,020	1,800	945	4,765
	304	6,820	6,770	2380	15,970
	305	4,330	5,160	840	10,330
	306	3,160	3,280	525	6,965
	total	21,860	23,430	7035	52,325
	total cost of jobs completed
	jobs
	301			6,165
	302			8,130
	303			4,765
	305			10,330
	total cost of jobs completed			29,390
	cost of jobs sold and sale price
	jobs			COGS		Sale
	301			6,165		7,400
	302			8,130		9,760
	303			4,765		13,820
	total			19,060		30,980
	1)	Journal Entries
		Account titles & Explanations				Debit	Credit
	a)	Raw materials inventory				3,140
		Accounts payable					3,140
	b)	Work in process inventory				45,290
		Factory overhead				4,890
		Raw materials invetory					22,710
		Factory wages payable					27,470
	c)	Factory overhead				4,760
		accounts payable					4,760
	d)	Factory overhead				1,940
		Accumulated depreciation					1,940
	e)	work in process inventory				7035
		Factory overhead					7035
	f)	finished goods inventory				29,390
		work in process inventory					29,390
	g)	accounts receivable				30,980
		sales					30,980
		Cost of goods sold				19,060
		Finished goods inventory					19,060
	2)	T-Account
		work in process inventory
		b)	45,290	f)	29,390
		e)	7035
		end bal	22,935
		(note entry b includes DM and DL
		if required u can show separately)
		finished goods inventory
		f)	29,390	g)	19,060
		end bal	10,330
	3)	Schedule of unfinished jobs
			Direct	Direct	Overhead	total
		Job	materials	labor	applied
		304	6,820	6,770	2380	15,970
		306	3,160	3,280	525	6,965
		total				22,935
	4)	Schedule of finished jobs
			Direct	Direct	Overhead	total
		Job	materials	labor	applied
		305	4,330	5,160	840	10,330