35 2 Entry for jobs completed; cost of unfinished jobs 36 37 The following account appears in the Work in Process ledger prior to recognizing the jobs completed in August: 38 39 Balance, August 1 $60,000 40 Direct materials 325,000 41 Direct labor 462,000 Factory overhead 210,000 43 44 Jobs finished during August are summarized as follows: 45 46 Job 210 $197,800 47 Job 216 240,000 48 Job 224 160,000 49 Job 230 364,000 50 51 a. Journalize the entry to record the jobs completed. 52 53 Date Account Debit Credit 54 55 56 57 58 59 b. Determine the cost of the unfinished jobs at August 31. $ 60 61 3 Inventory balance amounts; gross profit 63 64 Based in the information below, answer the following questions about Jonick industries for August, its first month of operations. (only if sold) 65 66 Factory Machine Sales 67 68 Job Job 201 Materials Labor Hours Completed? Price $12,000 $7,700 40 yes $32,800 69 Job 202 9,300 3,600 30 yes 70 Job 203 4,100 11,200 70 no 71 Job 204 3,100 2,800 50 yes 72 Job 205 7,400 9,100 60 yes 28,300 73 Job 206 5,800 3,100 20 no 74 For general factory use 4,800 5,800 75 76 Factory overhead is applied at a rate of $20 per machine hour. 77 78 Gross profit for August 79 Work in process, August 31 80 Finished goods, August 31 81 83 84 85 86 4 Predetermined factory overhead rate Spring Street Engine Shop uses a job order cost system to determine 87 the cost of performing engine repair work. 88 89 Estimated costs and expenses for the coming period are as follows: 90 91 Engine parts 92 93 94 95 96 97 98 Factory direct labor Factory equipment depreciation Factory supervisor salaries Factory property taxes Factory supplies Advertising expense Administrative office salaries 99 100 Administrative office depreciation expense Total costs and expenses $875,000 660,000 44,500 138,000 27,500 10,000 22,100 73,500 8.600 $1.850 200 101 102 The average direct labor rate paid to factory employees is $30 per hour. 103 104 Determine direct materials 105 106 Determine direct labor $ 107 108 Determine total factory overhead costs incurred. 109 110 Determine the predetermined shop overhead rate per direct labor hour. 111 113 $ 1 Entries for direct labor and factory overhead Townsend Industries Inc. manufactures recreational vehicles. 2 Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows: Job 11-101 $6,240 Job 11-102 9,000 Job 11-103 7,210 Job 11-104 6,750 Factory supervision 4,000 Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $18 per direct labor hour. The direct labor rate is $40 per hour. a. Journalize the entry to record the factory labor costs. Date Account a. Work in process Wages payable Factory Overhead Wages payable Debit Credit 29,200 29,200 4,000 4,000 b. Journalize the entry to apply factory overhead to production for November. Date b. Account Work in Process Factory Overhead Debit Credit 13,140 13,140 Entry for jobs completed; cost of unfinished jobs The following account appears in the Work in Process ledger prior to recognizing the jobs completed in August: Balance, August 1 $60,000 Direct materials 325,000 Direct labor 462,000 Factory overhead 210,000 Jobs finished during August are summarized as follows: a. Journalize the entry to record the jobs completed. Date a. Account Job 210 $197,800 Job 216 240,000 Job 224 160,000 Job 230 364,000 b. Determine the cost of the unfinished jobs at August 31. $ Debit Credit