Question
ntries and Schedules for Unfinished Jobs and Completed Jobs Hildreth Company uses a job order cost system. The following data summarize the operations related to
ntries 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:
Materials purchased on account, $2,450.
Materials requisitioned and factory labor used:
Job No. | Materials | Factory Labor | ||
101 | $2,020 | $2,410 | ||
102 | 2,460 | 3,250 | ||
103 | 1,640 | 1,590 | ||
104 | 5,530 | 5,980 | ||
105 | 3,510 | 4,550 | ||
106 | 2,570 | 2,890 | ||
For general factory use | 690 | 3,570 |
Factory overhead costs incurred on account, $3,860.
Depreciation of machinery and equipment, $1,710.
The factory overhead rate is $65 per machine hour. Machine hours used:
Job No. | Machine Hours | ||
101 | 17 | ||
102 | 19 | ||
103 | 39 | ||
104 | 68 | ||
105 | 19 | ||
106 | 37 | ||
Total | 199 |
Jobs completed: 101, 102, 103, and 105.
Jobs were shipped and customers were billed as follows: Job 101, $6,640; Job 102, $8,330; Job 105, $16,720.
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 | ||||
$ | $ | $ | $ |
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