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:

1. Materials purchased on account, $2,350.
2. Materials requisitioned and factory labor used:

   Job No.	Materials		Factory Labor
   101	$3,150		$1,740
   102	3,840		2,350
   103	2,550		1,150
   104	8,630		4,320
   105	5,480		3,290
   106	4,000		2,090
   For general factory use	1,070		2,580

3. Factory overhead costs incurred on account, $6,020.
4. Depreciation of machinery and equipment, $1,240.
5. The factory overhead rate is $40 per machine hour. Machine hours used:

   Job No.	Machine Hours
   101		25
   102		34
   103		20
   104		82
   105		43
   106		40
   Total		244

6. Jobs completed: 101, 102, 103, and 105.
7. Jobs were shipped and customers were billed as follows: Job 101, $7,070; Job 102, $9,060; Job 105, $13,050.

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.
b.
c.
d.
e.
f.
g. Sale
g. Cost

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
	$		$		$		$

Part 2

Entries for Costs in a Job Order Cost System

Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March:

1. Materials purchased on account, $770,000.
2. Materials requisitioned, $680,000, of which $75,800 was for general factory use.
3. Factory labor used, $756,000, of which $182,000 was indirect.
4. Other costs incurred on account for factory overhead, $245,000; selling expenses, $171,500; and administrative expenses, $110,600.
5. Prepaid expenses expired for factory overhead were $24,500; for selling expenses, $28,420; and for administrative expenses, $16,660.
6. Depreciation of factory equipment was $49,500; of office equipment, $61,800; and of office building, $14,900.
7. Factory overhead costs applied to jobs, $568,500.
8. Jobs completed, $1,500,000.
9. Cost of goods sold, $1,375,000.

Required:

Journalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank.

a. Materials purchased on account, $770,000.

Entry	Description	Debit	Credit
a.

b. Materials requisitioned, $680,000, of which $75,800 was for general factory use.

Entry	Description	Debit	Credit
b.

c. Factory labor used, $756,000, of which $182,000 was indirect.

Entry	Description	Debit	Credit
c.

d. Other costs incurred on account for factory overhead, $245,000; selling expenses, $171,500; and administrative expenses, $110,600.

Entry	Description	Debit	Credit
d.

e. Prepaid expenses expired for factory overhead were $24,500; for selling expenses, $28,420; and for administrative expenses, $16,660.

Entry	Description	Debit	Credit
e.

f. Depreciation of factory equipment was $49,500; of office equipment, $61,800; and of office building, $14,900.

Entry	Description	Debit	Credit
f.

g. Factory overhead costs applied to jobs, $568,500.

Entry	Description	Debit	Credit
g.

h. Jobs completed, $1,500,000.

Entry	Description	Debit	Credit
h.

i. Cost of goods sold, $1,375,000.

Entry	Description	Debit	Credit
i.