Question

Tybee Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations:

	a. Materials purchased on account, $28,790.
	b. Materials requisitioned and factory labor used:

Job	Materials	Factory Labor
301	$2,880	$2,910
302	3,690	3,860
303	2,300	1,780
304	7,820	6,990
305	5,310	5,050
306	3,700	3,280
For general factory use	1,070	4,180

	c. Factory overhead costs incurred on account, $5,600.
	d. Depreciation of machinery and equipment, $1,970.
	e. The factory overhead rate is $53 per machine hour. Machine hours used:

Job	Machine Hours
301	25
302	34
303	30
304	71
305	42
306	26
Total	228

	f. Jobs completed: 301, 302, 303 and 305.
	g. Jobs were shipped and customers were billed as follows: Job 301, $8,270; Job 302, $11,720; Job 303, $15,730.

	Required:
1.	Journalize the entries to record the summarized operations. Record each item (items a-f) as an individual entry on January 31. Record item g as 2 entries. Refer to the Chart of Accounts for exact wording of account titles.
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.
3.	Prepare a schedule of unfinished jobs to support the balance in the work in process account.*
4.	Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.* * Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries. CHART OF ACCOUNTS Tybee Industries Inc. General Ledger ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 132 Work in Process 133 Factory Overhead 134 Finished Goods 141 Supplies 142 Prepaid Insurance 143 Prepaid Expenses 181 Land 191 Machinery and Equipment 192 Accumulated Depreciation-Machinery and Equipment LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 241 Lease Payable 251 Wages Payable 252 Consultant Fees Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary Amount DescriptionsJob No. 301Job No. 302Job No. 303Job No. 304Job No. 305Job No. 306 1. Journalize the entries to record the summarized operations. Record each item (items a-f) as an individual entry on January 31. Record item g as 2 entries. Refer to the Chart of Accounts for exact wording of account titles. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 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. Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries. Tybee Industries Inc. Schedule of Unfinished Jobs 1 Job Direct Materials Direct Labor Factory Overhead Total 2 3 4 Balance of Work in Process, January 30

4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account. Refer to the list of Amount Descriptions list for the exact wording of the answer choices for text entries.

Tybee Industries Inc.

Schedule of Completed Jobs

1	Job	Direct Materials	Direct Labor	Factory Overhead	Total
2

Answer 1

	Direct	Direct	Overhead	total
Job	materials	labor	applied
301	2,880	2,910	1325	7,115
302	3,690	3,860	1802	9,352
303	2,300	1,780	1590	5,670
304	7,820	6,990	3763	18,573
305	5,310	5,050	2226	12,586
306	3,700	3,280	1378	8,358
total	25,700	23,870	12084	61,654
total cost of jobs completed
jobs
301			7,115
302			9,352
303			5,670
305			12,586
total cost of jobs completed			34,723
cost of jobs sold and sale price
jobs			COGS		Sale
301			7,115		8,270
302			9,352		11,720
303			5,670		15,730
total			22,137		35,720
1)	Journal Entries
	Account titles & Explanations				Debit	Credit
a)	Raw materials inventory				28,790
	Accounts payable					28,790
b)	Work in process inventory				49,570
	Factory overhead				5,250
	Raw materials invetory					26,770
	Factory wages payable					28,050
c)	Factory overhead				5,600
	accounts payable					5,600
d)	Factory overhead				1,970
	Accumulated depreciation					1,970
e)	work in process inventory				12084
	Factory overhead					12084
f)	finished goods inventory				34,723
	work in process inventory					34,723
g)	accounts receivable				35,720
	sales					35,720
	Cost of goods sold				22,137
	Finished goods inventory					22,137
2)	T-Account
	work in process inventory
	b)	49,570	f)	34,723
	e)	12084
	end bal	26,931
	(note entry b includes DM of $25,700 and DL of $23,870=49,570
	if required u can show separately)
	finished goods inventory
	f)	34,723	g)	22,137
	end bal	12,586
3)	Schedule of unfinished jobs
		Direct	Direct	Overhead	total
	Job	materials	labor	applied
	304	7,820	6,990	3763	18,573
	306	3,700	3,280	1378	8,358
	total				26,931
4)	Schedule of finished jobs
		Direct	Direct	Overhead	total
	Job	materials	labor	applied
	305	5,310	5,050	2226	12,586