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, $1,950.
2. Materials requisitioned and factory labor used:
   

   Job	Materials		Factory Labor
   301	$2,000		$2,370
   302	2,440		3,200
   303	1,620		1,560
   304	5,480		5,880
   305	3,480		4,480
   306	2,540		2,840
   For general factory use	680		3,510

3. Factory overhead costs incurred on account, $3,820.
4. Depreciation of machinery and equipment, $1,680.
5. The factory overhead rate is $35 per machine hour. Machine hours used:
   

   Job	Machine Hours
   301		18
   302		15
   303		41
   304		80
   305		29
   306		16
   Total		199

6. Jobs completed: 301, 302, 303, and 305.
7. Jobs were shipped and customers were billed as follows: Job 301, $6,000; Job 302, $7,400; Job 303, $13,380.

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

1.

sl.no	PARTICULARS	Debit	Credit
a.	Material	$      1,950
	Accounts Payable		$      1,950
	(To record the purchase of raw material)
b.	Work in process Inventory	$   37,890
	Factory Overhead	$      4,190
	Material		$   18,240
	Wages payable		$   23,840
	(To transfer raw material to production division and other divisions)
c.	Factory Overhead	$      3,820
	Accounts payable		$      3,820
	(To record the factory OH incurred on account)
d.	Factory Overhead	$      1,680
	Accumulated Depreciation		$      1,680
	(To record the factory equipment)
e.	Work in process Inventory	$      6,965
	Factory Overhead		$      6,965
	(To record the factoy OH of $35 for 199 MH)
f.	Finished Goods Inventory	$   24,755
	Work in process Inventory		$   24,755
	(To record the transfer of finished goods-Job 301,302,303,305)-w.n
g1.	Accounts Receivable	$   26,780
	Sales		$   26,780
	(To record the sale on account -job 301,302,303)
g2.	Cost of goods sold	$   15,780
	Finished goods Inventory		$   15,780
	(To record the cogs for job 301,302,303)-w.n

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