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Entries and Schedules for Unfinished Jobs and Completed Jobs Hildreth Company uses a job order cost...

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:

  1. Materials purchased on account, $3,230.
  2. Materials requisitioned and factory labor used:
    Job No. Materials Factory Labor
    101 $2,030 $1,940
    102 2,480 2,620
    103 1,640 1,280
    104 5,560 4,810
    105 3,530 3,670
    106 2,580 2,330
    For general factory use 690 2,870
  3. Factory overhead costs incurred on account, $3,880.
  4. Depreciation of machinery and equipment, $1,380.
  5. The factory overhead rate is $40 per machine hour. Machine hours used:
    Job No. Machine Hours
    101 30
    102 36
    103 25
    104 68
    105 33
    106 37
    Total 229
  6. Jobs completed: 101, 102, 103, and 105.
  7. Jobs were shipped and customers were billed as follows: Job 101, $6,200; Job 102, $7,850; Job 105, $11,370.

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
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
$ $ $ $

Feedback

1a & b.

Materials are recorded in the Materials Inventory account until requisitioned.

All direct costs: materials and labor are recorded in the Work in Process account.

All indirect costs are considered overhead and are recorded in the Factory Overhead account.

Overhead is applied to Work in Process using a predetermined overhead rate.

The cost of completed jobs should be moved to the Finished Goods account.

The cost of sold jobs should be moved to the Cost of Goods Sold account.

2. Post entries to the Work in Process T account and to the Finished Goods T account.

3. Include the direct materials, direct labor, and factory overhead for each unfinished job.

4. Include the direct materials, direct labor, and factory overhead for each finished job.

Solutions

Expert Solution

job sheet
Materials labor overhead total
job 101 2,030 1,940 1200 5,170
job 102 2,480 2,620 1440 6,540
job 103 1,640 1,280 1000 3,920
job 104 5,560 4,810 2720 13,090
job105 3,530 3,670 1320 8,520
job 106 2,580 2,330 1480 6,390
total 17,820 16,650 9160 43,630
Entries              Description                                  Debit Credit
a. Raw materials inventory 3,230
Accounts payable 3,230
b. Work in process inventory 34,470
Factory overhead 3560
Raw materials inventory 18,510
Factory payroll 19,520
38,030 38030
c. Factory overhead 3,880
Accounts payable 3,880
d. Factory overhead 1,380
Accumulated depreciation 1,380
e. Work in process inventory 9,160
Factory overhead 9,160
f. Finished goods inventory 24,150
work in process inventory 24,150
(job 101,102,103 &105)
g. Accounts receivable 25420
sale 25,420
cost of good sold 20,230
finished goods inventory 20,230
2) work in process
b. 34,470 24,150 f.
e. 9,160
bal 19,480
Finished goods
f. 24,150 20,230 g.
bal 3,920
3) Schedule of unfinished jobs
job Direct direct FOH total
materials labor
job 104 5,560 4,810 2720 13,090
job 106 2,580 2,330 1480 6,390
Balance in work in process ,april 30 19,480
4) Schedule of completed jobs
job Direct direct FOH total
materials labor
job 103 1,640 1,280 1,000 3,920

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