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, $1,870.

Materials requisitioned and factory labor used:

Job	Materials		Factory Labor
301	$2,300		$2,400
302	2,810		3,240
303	1,860		1,580
304	6,300		5,950
305	4,000		4,540
306	2,920		2,880
For general factory use	780		3,550

Factory overhead costs incurred on account, $4,390.

Depreciation of machinery and equipment, $1,700.

The factory overhead rate is $40 per machine hour. Machine hours used:

Job	Machine Hours
301		36
302		15
303		42
304		74
305		38
306		41
Total		246

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

Jobs were shipped and customers were billed as follows: Job 301, $7,370; Job 302, $7,980; Job 303, $14,850.

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.	Materials
	Accounts Payable
b.	Work in Process
	Factory Overhead
c.	Factory Overhead
	Accounts Payable
d.	Factory Overhead
	Accumulated Depreciation-Machinery and Equipment
e.	Work in Process
	Factory Overhead
f.	Finished Goods
	Work in Process
g.	Accounts Receivable
	Sales
	Cost of Goods Sold
	Finished Goods

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)		(f)
(e)
Bal.

Finished Goods
(f)		(g)
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
No. 304	$		$		$		$
No. 306
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
Finished Goods, January 30 (Job 305)	$		$

Answer 1

1 Journal Entries :
Date	Accounts Titles	Debit $	Credit$
a	Material	1870
	AP		1870
b	WIP	20190
	F O/H	780
	Material		20970
c	WIP	20590
	F O/H	3550
	Lab payable		24140
d	F O/H	4390
	AP		4390
e	F O/H	1700
	Dep exp		1700
f	WIP	9840
	F O/H		9840
g	FG Invent	22730
	WIP		22730
	(2300+2810+1860+4000+2400+3240+1580+4540)
h	AR	30200
	Sales rev		30200
i	COGS	14190
	FG Invent		14190
	(2300+2810+1860+2400+3240+1580)

2) t-Accounts:
WIP a/c:
b	20190	g	22730
c	20590	C/B	27890
f	9840
FG a/c :
g	22730	i	14190
		C/B	8540
3)
schedule of unfinished jobs:
job	DM	DL	F O/h	Total
304	6300	5950	2960	15514
306	2920	2880	1640	7746
4)
schedule of completed jobs:
job	DM	DL	F O/h	Total
305	4000	4540	1520	10365