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, $2,400. Materials requisitioned and factory labor used: Job No. Materials Factory Labor 101 $2,110 $3,020 102 2,570 4,080 103 1,710 1,990 104 5,780 7,490 105 3,670 5,710 106 2,680 3,620 For general factory use 720 4,470 Factory overhead costs incurred on account, $4,030. Depreciation of machinery and equipment, $2,140. The factory overhead rate is $70 per machine hour. Machine hours used: Job No. Machine Hours 101 42 102 17 103 22 104 69 105 38 106 41 Total 229 Jobs completed: 101, 102, 103, and 105. Jobs were shipped and customers were billed as follows: Job 101, $9,680; Job 102, $9,410; Job 105, $15,200. 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.

Answer 1

NO	GENERAL JOURNAL	DEBIT	CREDIT
a)	Materials	$ 2,400
	Accounts payable		$ 2,400
	( to record materials purchased )
b)	Work in process ( see note 1)	$ 18,520
	Factory overhead	$ 720
	Materials ($18,520 +$720)		$ 19,240
	( to record materials requisitioned to the jobs)
	Work in process ( see note 1)	$ 25,910
	Factory overhead	$4,470
	Materials ($25,910 +$ 4,470)		$ 30,380
	( to record factory labor used in production )
c)	Factory overhead	$ 4,030
	Accounts payable		$ 4,030
	( to record factory overhed incurred)
d)	Factory overhead	$2,140
	Accumulated depreciation-machinery&equipment		$2,140
	( to record depreciation on account)
e)	Work in process	$ 16,030
	Factory overhead (229 hours*$ 70 per hour)		$ 16,030
	(to record overhead applied to jobs )
f)	Finished goods ( see note 2)	$ 33,190
	Work in process		$ 33,190
	( to record completion of the job 101,102,103,105 )
g)	Accounts receivable	$ 34,290
	Sales ($ 9,680+ $9,410+ $15,200 )		$ 34,290
	( to record the sales on account )

All explanation is given below :

note:
1) calculate the work in process for material and factory labor :
job no	for materials	for factory labor
101	$ 2,110	$ 3,020
102	$ 2,570	$ 4,080
103	$ 1,710	$ 1,990
104	$ 5,780	$ 7,490
105	$ 3,670	$ 5,710
106	$ 2,680	$ 3,620
total	$ 18,520	$ 25,910
2) to record completion of the job 101,102,103,105 :
job no	for materials	for factory labor
101	$ 2,110	$ 3,020
102	$ 2,570	$ 4,080
103	$ 1,710	$ 1,990
105	$ 3,670	$ 5,710
total	$ 10,060	$ 14,800
overhead applied = (42+17+22+38 ) hours *$ 70 per machine hours
overhead applied = $ 8,330
finished goods = $ 10,060+$ 14,800+$ 8,330
finished goods = $ 33,190