2) 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:

Job		Materials	Factory Labor
	a. Materials purchased on account, $29,800.
	b. Materials requisitioned and factory labor used:
301		$ 2,960	$2,775
302		3,620	3,750
303		2,400	1,875
304		8,100	6,860
305		5,100	5,250
306		3,750	3,340
For general factory use		1,080	4,100

		c. Factory overhead costs incurred on account, $5,500.
		d. Depreciation of machinery and equipment, $1,980.
		e. The factory overhead rate is $54 per machine hour. Machine hours used:
Job		Machine Hours
301		25
302		36
303		30
304		72
305		40
306		25
Total		228

Required:

f. Jobs completed: 301, 302, 303 and 305.

g. Jobs were shipped and customers were billed as follows: Job 301, $8,250; Job 302, $11,200; Job 303, $15,000.

a)

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.

b)

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.

c)

Prepare a schedule of unfinished jobs to support the balance in the work in process account.*

d)

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.