Recording of wage entries and preparation of reports for a cost per system purchase orders Hildreth Company uses a job order cost system. The following data summarizes the operations of the company related to production for the month of April, the company's first month of operations: a. Materials purchased on account (materials purchased on account), $147,000. b. Requisition of materials and labor costs (materials reouisitioned and factorv labor used: c. Factory overhead costs incurred on account, $6,000. d. Depreciation of machinery and equipment, $4,100. e. The amount of factory overhead that is applied to production is at the rate of $40 for each hour of use of machinery. The hours of use of the machinery are as follows: (The factory overhead rate is $40 per machine hour. Machine hours tised are as follows:) f. Jobs completed: 101, 102, 103, and 105 . g. Jobs have been shipped to clicnts and invoiced to you as described below (jobs were shipped and customers were billed as follows): Job 101, $62,900; Job 102,$80,700; Job 105,$45,500. Instructions: 1. Journalize the previously described entries. 2. Transfer the wage entries to the Work in Process T accounts and finished Products (Finished Goods), using the letters that identify the transactions. Then determine the ending balance of both accounts. 3. Prepare a report for unfinished work to verify the balance recorded in the work in Process Inventory account. 4. Prepare a completed job on hand report for check the final balance of the Finished Goods account. 1. 2. c. d. e. f. Computation of cost of jobs finished. g. Computation of cost of jobs sold: +++ Recording of wage entries and preparation of reports for a cost per system purchase orders Hildreth Company uses a job order cost system. The following data summarizes the operations of the company related to production for the month of April, the company's first month of operations: a. Materials purchased on account (materials purchased on account), $147,000. b. Requisition of materials and labor costs (materials reouisitioned and factorv labor used: c. Factory overhead costs incurred on account, $6,000. d. Depreciation of machinery and equipment, $4,100. e. The amount of factory overhead that is applied to production is at the rate of $40 for each hour of use of machinery. The hours of use of the machinery are as follows: (The factory overhead rate is $40 per machine hour. Machine hours tised are as follows:) f. Jobs completed: 101, 102, 103, and 105 . g. Jobs have been shipped to clicnts and invoiced to you as described below (jobs were shipped and customers were billed as follows): Job 101, $62,900; Job 102,$80,700; Job 105,$45,500. Instructions: 1. Journalize the previously described entries. 2. Transfer the wage entries to the Work in Process T accounts and finished Products (Finished Goods), using the letters that identify the transactions. Then determine the ending balance of both accounts. 3. Prepare a report for unfinished work to verify the balance recorded in the work in Process Inventory account. 4. Prepare a completed job on hand report for check the final balance of the Finished Goods account. 1. 2. c. d. e. f. Computation of cost of jobs finished. g. Computation of cost of jobs sold: +++
