Hillman Tool Company uses a job order cost system. The following data summarize the operations related to production for May 2008, the first month of operations:

a. Materials purchased on account, $9,400.

b. Materials requisitioned and factory labor used:

c. Factory overhead costs incurred on account, $405.
d. Depreciation of machinery and equipment, $520.
e. The factory overhead rate is $35 per machine hour. Machine hours used:
Machine
Job Hours
No. 101 ...... 6
No. 102 ....... 10
No. 103 ...... 8
No. 104 ....... 25
No. 105 ....... 11
No. 106 ...... 7
Total ........ 67

f. Jobs completed: 101, 102, 103, and 105.
g. Jobs were shipped and customers were billed as follows: Job 101, $4,350; Job 102, $4,800; Job 103, $2,350.

Instructions
1. Journalize the entries to record the summarized operations.
2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as dates. Insert memorandum 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 goodsaccount.

Transcribed Image Text:

Job Materials Factory Labor No. 101 No. 102 No. 103 No. 104 No. 105 No. 106 For general factory use 875 1,275 660 2,200 1,300 925 270 S 750 985 500 1,765 1,350 790 1,000