Question

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, $3,250.

Materials requisitioned and factory labor used:

Job No.	Materials		Factory Labor
101	$2,710		$2,500
102	3,310		3,380
103	2,200		1,650
104	7,430		6,200
105	4,720		4,730
106	3,440		3,000
For general factory use	920		3,700

Factory overhead costs incurred on account, $5,180.

Depreciation of machinery and equipment, $1,780.

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

Job No.	Machine Hours
101		28
102		40
103		26
104		82
105		41
106		36
Total		253

Jobs completed: 101, 102, 103, and 105.

Jobs were shipped and customers were billed as follows: Job 101, $7,600; Job 102, $9,950; Job 105, $14,180.

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
	Materials
	Wages Payable
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. Sale	Accounts Receivable
	Sales
g. Cost	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.

Hildreth Company Schedule of Unfinished Jobs
Job	Direct Materials		Direct Labor		Factory Overhead		Total
No. 104	$		$		$		$
No. 106
Balance of Work in Process, April 30							$

4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.

Hildreth Company Schedule of Completed Jobs
Job	Direct Materials		Direct Labor		Factory Overhead		Total
Finished Goods, April 30 (Job 103)	$		$		$		$

Answer 1

job sheet
		Materials	labor	overhead	total
job 101		2,710	2,500	1120	6,330
job 102		3,310	3,380	1600	8,290
job 103		2,200	1,650	1040	4,890
job 104		7,430	6,200	3280	16,910
job105		4,720	4,730	1640	11,090
job 106		3,440	3,000	1440	7,880
total		23,810	21,460	10120	55,390
Entries	Description				Debit	Credit
a.	Raw materials inventory				3,250
	Accounts payable					3,250
b.	Work in process inventory				45,270
	Factory overhead				4620
	Raw materials inventory					24,730
	Factory payroll					25,160
c.	Factory overhead				5,180
	Accounts payable					5,180
d.	Factory overhead				1,780
	Accumulated depreciation					1,780
e.	Work in process inventory				10,120
	Factory overhead					10,120
f.	Finished goods inventory				30,600
	work in process inventory					30,600
	(44,980+57640+32480+39990)
g.	Accounts receivable				31730
	sale					31,730
	cost of good sold				25,710
	finished goods inventory					142,610
	(44,980+57640+39,990)
2)	work in process
	b.	45,270	30,600	f.
	e.	10,120
	bal	24,790
	Finished goods
	f.	30,600	25,710	g.
	bal	4,890
3)	Schedule of unfinished jobs
	job	Direct	direct	FOH	total
		materials	labor
	job 104	7,430	6,200	3280	16,910
	job 105	3,440	3,000	1440	7,880
	Balance in work in process ,april 30				24,790
4)	Schedule of completed jobs
		job	Direct	direct	FOH	total
			materials	labor
		job 103	2,200	1,650	1040	4,890