Question
Kaymer Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations:
Kaymer Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations: Materials purchased on account, $25,420. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $2,570 $2,350 302 3,140 3,170 303 2,080 1,550 304 7,040 5,830 305 4,470 4,440 306 3,260 2,820 For general factory use 870 3,480 Factory overhead costs incurred on account, $4,910. Depreciation of f
Kaymer Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations:
Materials purchased on account, $25,420.
Materials requisitioned and factory labor used:
Job | Materials | Factory Labor | ||
301 | $2,570 | $2,350 | ||
302 | 3,140 | 3,170 | ||
303 | 2,080 | 1,550 | ||
304 | 7,040 | 5,830 | ||
305 | 4,470 | 4,440 | ||
306 | 3,260 | 2,820 | ||
For general factory use | 870 | 3,480 |
Factory overhead costs incurred on account, $4,910.
Depreciation of factory machinery and equipment, $1,670.
The factory overhead rate is $70 per machine hour. Machine hours used:
Job | Machine Hours | ||
301 | 43 | ||
302 | 29 | ||
303 | 29 | ||
304 | 82 | ||
305 | 45 | ||
306 | 23 | ||
Total | 251 |
Jobs completed: 301, 302, 303, and 305.
Jobs were shipped and customers were billed as follows: Job 301, $9,520; Job 302, $10,010; Job 303, $16,410.
Required:
1. Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank.
Entries | Description | Debit | Credit |
---|---|---|---|
a. | Accounts PayableFactory OverheadFinished GoodsMaterialsWork in ProcessMaterials | fill in the blank 2 | fill in the blank 3 |
Accounts PayableFactory OverheadFinished GoodsMaterialsWork in ProcessAccounts Payable | fill in the blank 5 | fill in the blank 6 | |
b. | Accounts PayableCost of Goods SoldMaterialsWages PayableWork in ProcessWork in Process | fill in the blank 8 | fill in the blank 9 |
Accounts PayableAccounts ReceivableFactory OverheadMaterialsWages PayableFactory Overhead | fill in the blank 11 | fill in the blank 12 | |
Accounts PayableAccounts ReceivableFactory OverheadMaterialsWork in ProcessMaterials | fill in the blank 14 | fill in the blank 15 | |
Accounts PayableCost of Goods SoldFactory OverheadWork in ProcessWages PayableWages Payable | fill in the blank 17 | fill in the blank 18 | |
c. | Accounts PayableCost of Goods SoldFactory OverheadMaterialsWork in ProcessFactory Overhead | fill in the blank 20 | fill in the blank 21 |
Accounts PayableCost of Goods SoldFactory OverheadMaterialsWork in ProcessAccounts Payable | fill in the blank 23 | fill in the blank 24 | |
d. | Accounts PayableAccumulated Depreciation-Machinery and EquipmentCost of Goods SoldFactory OverheadWork in ProcessFactory Overhead | fill in the blank 26 | fill in the blank 27 |
Accounts PayableAccumulated Depreciation-Machinery and EquipmentCost of Goods SoldFactory OverheadWork in ProcessAccumulated Depreciation-Machinery and Equipment | fill in the blank 29 | fill in the blank 30 | |
e. | Accounts PayableAccounts ReceivableFactory OverheadFinished GoodsWork in ProcessWork in Process | fill in the blank 32 | fill in the blank 33 |
Accounts PayableFactory OverheadFinished GoodsMaterialsWork in ProcessFactory Overhead | fill in the blank 35 | fill in the blank 36 | |
f. | Accounts PayableAccounts ReceivableFactory OverheadFinished GoodsWork in ProcessFinished Goods | fill in the blank 38 | fill in the blank 39 |
Accounts PayableFactory OverheadFinished GoodsMaterialsWork in ProcessWork in Process | fill in the blank 41 | fill in the blank 42 | |
g. | Accounts ReceivableFactory OverheadFinished GoodsSalesWork in ProcessAccounts Receivable | fill in the blank 44 | fill in the blank 45 |
Accounts ReceivableFactory OverheadFinished GoodsSalesWork in ProcessSales | fill in the blank 47 | fill in the blank 48 | |
Accounts PayableCost of Goods SoldFactory OverheadFinished GoodsWork in ProcessCost of Goods Sold | fill in the blank 50 | fill in the blank 51 | |
Accounts PayableCost of Goods SoldFactory OverheadFinished GoodsWork in ProcessFinished Goods | fill in the blank 53 | fill in the blank 54 |
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 | |||
---|---|---|---|
(a)(b)(c)(d)(f)(g)(b) | fill in the blank 56 | (a)(b)(c)(d)(e)(f)(g)(f) | fill in the blank 58 |
(a)(c)(d)(e)(f)(g)(e) | fill in the blank 60 | ||
Bal. | fill in the blank 61 |
Finished Goods | |||
---|---|---|---|
(a)(b)(c)(d)(e)(f)(g)(f) | fill in the blank 63 | (a)(b)(c)(d)(e)(f)(g)(g) | fill in the blank 65 |
Bal. | fill in the blank 66 |
3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.
Kaymer Industries Inc. Schedule of Unfinished Jobs | ||||||||
---|---|---|---|---|---|---|---|---|
Job | Direct Materials | Direct Labor | Factory Overhead | Total | ||||
No. 301No. 302No. 303No. 304No. 305No. 304 | $fill in the blank 68 | $fill in the blank 69 | $fill in the blank 70 | $fill in the blank 71 | ||||
No. 302No. 303No. 304No. 305No. 306No. 306 | fill in the blank 73 | fill in the blank 74 | fill in the blank 75 | fill in the blank 76 | ||||
Balance of Work in Process, January 30 | $fill in the blank 77 |
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
Kaymer Industries Inc. Schedule of Completed Jobs | ||||||||
---|---|---|---|---|---|---|---|---|
Job | Direct Materials | Direct Labor | Factory Overhead | Total | ||||
Finished Goods, January 30 (Job 303)Finished Goods, January 30 (Job 305)Finished Goods, January 30 (Job 306)Finished Goods, January 30 (Job 305) | $fill in the blank 79 | $fill in the blank 80 | $fill in the blank 81 |
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