Question

ntries 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, $2,450.

Materials requisitioned and factory labor used:

Job No.	Materials		Factory Labor
101	$2,020		$2,410
102	2,460		3,250
103	1,640		1,590
104	5,530		5,980
105	3,510		4,550
106	2,570		2,890
For general factory use	690		3,570

Factory overhead costs incurred on account, $3,860.

Depreciation of machinery and equipment, $1,710.

The factory overhead rate is $65 per machine hour. Machine hours used:

Job No.	Machine Hours
101		17
102		19
103		39
104		68
105		19
106		37
Total		199

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

Jobs were shipped and customers were billed as follows: Job 101, $6,640; Job 102, $8,330; Job 105, $16,720.

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
	$		$		$		$

Answer 1

Answer 1.
Journal Entry
Date	Particulars	Dr. Amt.	Cr. Amt.
a.	Materials	2,450.00
	Accounts Payable		2,450.00
b.	Work in Process	38,400.00
	Factory Overhead	4,260.00
	Materials		18,420.00
	Wages Payable		24,240.00
c.	Factory Overhead	3,860.00
	Accounts Payable		3,860.00
d.	Factory Overhead	1,710.00
	Accumulated Depreciation - Machinery & Equip.		1,710.00
e.	Work in Process	12,935.00
	Factory Overhead		12,935.00
f.	Finished Goods Inventory	27,540.00
	Work in Process		27,540.00
g. Sale	Accounts Receivable	31,690.00
	Sales Revenue		31,690.00
g. Cost	Cost of Goods Sold	21,775.00
	Finished Goods Inventory		21,775.00

Answer 2.
Work in Process
Beg. Bal	-	27,540.00	Finished Goods
Material	17,730.00
Labor	20,670.00
Factory Overhead	12,935.00
End. Bal.	23,795.00
Finished Goods
Beg. Bal	-	21,775.00	Cost of Goods Sold
Work in Process	27,540.00
End. Bal.	5,765.00

Answer 3.
Schedule of Unfinished Goods
Job No.	Direct Material	Direct Labor	Factory Overhead	Total	Status
104	5,530.00	5,980.00	4,420.00	15,930.00	WIP
106	2,570.00	2,890.00	2,405.00	7,865.00	WIP
Answer 4.
Schedule of Completed Jobs
Job No.	Direct Material	Direct Labor	Factory Overhead	Total	Status
103	1,640.00	1,590.00	2,535.00	5,765.00	Finished