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:

Materials purchased on account, $2,040.

Materials requisitioned and factory labor used:

Job	Materials		Factory Labor
301	$2,160		$2,280
302	2,640		3,080
303	1,750		1,500
304	5,920		5,650
305	3,760		4,310
306	2,740		2,740
For general factory use	730		3,370

Factory overhead costs incurred on account, $4,130.

Depreciation of machinery and equipment, $1,620.

The factory overhead rate is $60 per machine hour. Machine hours used:

Job	Machine Hours
301		24
302		29
303		44
304		85
305		29
306		41
Total		252

Jobs completed: 301, 302, 303, and 305.

Jobs were shipped and customers were billed as follows: Job 301, $7,060; Job 302, $8,950; Job 303, $17,080.

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

		Direct	Direct	Overhead	total
	Job	materials	labor	applied
	301	2,160	2,280	1440	5,880
	302	2,640	3,080	1740	7,460
	303	1,750	1,500	2640	5,890
	304	5,920	5,650	5100	16,670
	305	3,760	4,310	1740	9,810
	306	2,740	2,740	2460	7,940
	total	18,970	19,560	15120	53,650
	total cost of jobs completed
	jobs
	301			5,880
	302			7,460
	303			5,890
	305			9,810
	total cost of jobs completed			29,040
	cost of jobs sold and sale price
	jobs			COGS		Sale
	301			5,880		7,060
	302			7,460		8,950
	303			5,890		17,080
	total			19,230		33,090
	1)	Journal Entries
		Account titles & Explanations				Debit	Credit
	a)	Raw materials inventory				2,040
		Accounts payable					2,040
	b)	Work in process inventory				38,530
		Factory overhead				4,100
		Raw materials invetory					19,700
		Factory wages payable					22,930
	c)	Factory overhead				4,130
		accounts payable					4,130
	d)	Factory overhead				1,620
		Accumulated depreciation					1,620
	e)	work in process inventory				15120
		Factory overhead					15120
	f)	finished goods inventory				29,040
		work in process inventory					29,040
	g)	accounts receivable				33,090
		sales					33,090
		Cost of goods sold				19,230
		Finished goods inventory					19,230
	2)	T-Account
		work in process inventory
		b)	38,530	f)	29,040
		e)	15120
		end bal	24,610
		(note entry b includes DM and DL
		if required u can show separately)
		finished goods inventory
		f)	29,040	g)	19,230
		end bal	9,810
	3)	Schedule of unfinished jobs
			Direct	Direct	Overhead	total
		Job	materials	labor	applied
		304	5,920	5,650	5100	16,670
		306	2,740	2,740	2460	7,940
		total				24,610
	4)	Schedule of finished jobs
			Direct	Direct	Overhead	total
		Job	materials	labor	applied
		305	3,760	4,310	1740	9,810