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, $3,230.
2. Materials requisitioned and factory labor used:

   Job No.	Materials		Factory Labor
   101	$2,030		$1,940
   102	2,480		2,620
   103	1,640		1,280
   104	5,560		4,810
   105	3,530		3,670
   106	2,580		2,330
   For general factory use	690		2,870

3. Factory overhead costs incurred on account, $3,880.
4. Depreciation of machinery and equipment, $1,380.
5. The factory overhead rate is $40 per machine hour. Machine hours used:

   Job No.	Machine Hours
   101		30
   102		36
   103		25
   104		68
   105		33
   106		37
   Total		229

6. Jobs completed: 101, 102, 103, and 105.
7. Jobs were shipped and customers were billed as follows: Job 101, $6,200; Job 102, $7,850; Job 105, $11,370.

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
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
	$		$		$		$

Feedback

1a & b.

Materials are recorded in the Materials Inventory account until requisitioned.

All direct costs: materials and labor are recorded in the Work in Process account.

All indirect costs are considered overhead and are recorded in the Factory Overhead account.

Overhead is applied to Work in Process using a predetermined overhead rate.

The cost of completed jobs should be moved to the Finished Goods account.

The cost of sold jobs should be moved to the Cost of Goods Sold account.

2. Post entries to the Work in Process T account and to the Finished Goods T account.

3. Include the direct materials, direct labor, and factory overhead for each unfinished job.

4. Include the direct materials, direct labor, and factory overhead for each finished job.