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:

a) Materials purchased on account, $2,670.

b) Materials requisitioned and factory labor used:

Job No.	Materials		Factory Labor
101	$1,840		$2,050
102	2,240		2,770
103	1,490		1,350
104	5,040		5,080
105	3,200		3,870
106	2,340		2,460
For general factory use	630		3,030

c) Factory overhead costs incurred on account, $3,510.

d) Depreciation of machinery and equipment, $1,460.

e) The factory overhead rate is $40 per machine hour. Machine hours used:

Job No.	Machine Hours
101		22
102		24
103		43
104		70
105		35
106		21
Total		215

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

Jobs were shipped and customers were billed as follows: Job 101, $5,720; Job 102, $7,160; Job 105, $13,220.

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
(b)		(f)
(e)
Bal.

Finished Goods
(f)		(g)
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
No. 104	$		$		$		$
No. 106
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
Finished Goods, April 30 (Job 103)	$		$		$		$

Answer 1

Solution:

Primary Working
	Job 101	Job 102	Job 103	Job 104	Job 105	Job 106	Total
Direct Materials used	$1,840	$2,240	$1,490	$5,040	$3,200	$2,340	$16,150
Direct Labor Costs	$2,050	$2,770	$1,350	$5,080	$3,870	$2,460	$17,580
Applied Factory Overhead (Refer Note 1)	$880	$960	$1,720	$2,800	$1,400	$840	$8,600
Total Manufacturing Costs	$4,770	$5,970	$4,560	$12,920	$8,470	$5,640	$42,330
Note 1	Job 101	Job 102	Job 103	Job 104	Job 105	Job 106	Total
Machine Hours Used	22	24	43	70	35	21	215
Overhead Rate per Machine Hour	$40	$40	$40	$40	$40	$40
Applied Factory Overhead	$880	$960	$1,720	$2,800	$1,400	$840	$8,600

Part 1 – Journal Entry

Transaction	General Journal	Debit	Credit
a.	Materials	$2,670
	Accounts Payable		$2,670
b.	Work In Process (16150 + 17580)	$33,730
	Factory Overhead (630 + 3030)	$3,660
	Materials		$16,150
	Wages Payable (17580 + 3030)		$20,610
c.	Factory Overhead	$3,510
	Accounts Payable		$3,510
d.	Factory Overhead	$1,460
	Accumulated Depreciation Machinery and Equipment		$1,460
e.	Work in Process (Refer Note 1)	$8,600
	Factory Overhead		$8,600
f.	Finished Goods (Job1 $4770 + Job2 $5970 + Job3 $4560 + Job5 $8470)	$23,770
	Work IN Process		$23,770
g. Sale	Accounts Receivable (5720+7160+13220)	$26,100
	Sales		$26,100
g. Cost	Cost of Goods Sold (4770 + 5970 + 8470)	$19,210
	Finished Goods		$19,210

Part 2 – T-Accounts

Work In Process
b.	$33,730	f.	$23,770
e.	$8,600
Bal.	$18,560
Finished Goods
f.	$23,770	g.	$19,210
Bal.	$4,560

Part 3 – Schedule of Unfinished Jobs

Schedule of Unfinished Jobs
Job	Direct Materials	Direct Labor	Factory Overhead	Total
No. 104	$5,040	$5,080	$2,800	$12,920
No. 106	$2,340	$2,460	$840	$5,640
Balance of Work In Process, April 30				$18,560

Part 4 – Schedule of Completed Jobs

Schedule of Completed Jobs
Job	Direct Materials	Direct Labor	Factory Overhead	Total
Finished Goods, April 30 (Job 103)	$1,490	$1,350	$1,720	$4,560

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