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, $2,920. Materials requisitioned and factory labor used: Job No. Materials Factory Labor 101 $1,970 $2,970 102 2,400 4,010 103 1,600 1,960 104 5,400 7,370 105 3,430 5,610 106 2,500 3,560 For general factory use 670 4,400 Factory overhead costs incurred on account, $3,760. Depreciation of machinery and equipment, $2,110. The factory overhead rate is $35 per machine hour. Machine hours used: Job No. Machine Hours 101 17 102 39 103 36 104 81 105 29 106 23 Total 225 Jobs completed: 101, 102, 103, and 105. Jobs were shipped and customers were billed as follows: Job 101, $6,640; Job 102, $9,330; Job 105, $13,980. 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 Sales Cost of Goods Sold 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. Hildreth Company Schedule of Unfinished Jobs Job Direct Materials Direct Labor Factory Overhead Total $ $ $ $ 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 $ $ $ $

Answer 1

(ALL VALUES IN $)

1.

1. Materials A/c Dr.          2920

To Accounts Payable Cr. 2920

1. Work in process                (Note no. 1)                                       Dr.          17300

To Materials Cr. 17300

Work in process                (Note no. 2)                                       Dr.          25480

To Wages Payable                                           Cr.                          25480

Factory Overhead Dr.          5070

                                To Materials Cr.                          670

                                To Wages Payable Cr.                          4400

1. Factory OH Dr.          3760

To Accounts Payable Cr. 3760

1. Factory OH Dr.          2110

To Accumulated Depreciation Cr.                          2110

1. Work in process(Note no. 3) Dr.          7875

To Factory OH Cr.                          7875

1. Finished Goods (Note no. 4) Dr.          28185

To Work in process Cr.                          28185

1. Accounts Receivable(Note no. 5) Dr.          29950

To Sales Cr.                          29950

                Cost of Goods Sold(Note no. 6) Dr.          23365

                                To Finished Goods Cr.                          23365

2.

Particulars	Amount
Work in process(17300+25480+7875-28185)	22470
Finished Goods(28185-23365)	4820

3.

Schedule for Unfinished Jobs
Job No.	Direct material	Direct labour	Factory OH	Total
104	5400	7370	2835	15605
106	2500	3560	805	6865
Balance of Work in Process, March 31				22470

4.

Schedule for Completed Jobs
Job No. 103	Amount
Direct Material	1600
Direct Labour	1960
Factory OH	1260
Balance of Finished Goods, March 31	4820

Working Notes :

1.Work in process                                =             1970+2400+1600+5400+3430+2500

=17300

2.Work in process                                =             2970+4010+1960+7370+5610+3560

=25480

3.

Job no.	Rate per hour	Hours Worked	Amount
101	35	17	595
102	35	39	1365
103	35	36	1260
104	35	81	2835
105	35	29	1015
106	35	23	805
			7875

4.

Job no.	Material	Labour	Factory OH	Total
101	1970	2970	595	5535
102	2400	4010	1365	7775
103	1600	1960	1260	4820
105	3430	5610	1015	10055
				28185

5.Sales      =             6640+9330+13980

=             29950

6.Costs of Goods Sold        =             5535+7775+10055