In: Accounting
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:
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 |
Job No. | Machine Hours | ||
101 | 30 | ||
102 | 36 | ||
103 | 25 | ||
104 | 68 | ||
105 | 33 | ||
106 | 37 | ||
Total | 229 |
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.
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 | |||