Question
Tybee Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January 2016, the first month of
Tybee Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January 2016, the first month of operations:
a. Materials purchased on account, $31,250. | |
b. Materials requisitioned and factory labor used: |
Job | Materials | Factory Labor |
---|---|---|
301 | $2,910 | $2,680 |
302 | 3,730 | 3,630 |
303 | 2,280 | 1,810 |
304 | 8,430 | 7,110 |
305 | 4,850 | 5,010 |
306 | 3,900 | 3,280 |
For general factory use | 1,050 | 3,920 |
c. Factory overhead costs incurred on account, $5,760. | |
d. Depreciation of machinery and equipment, $2,040. | |
e. The factory overhead rate is $55 per machine hour. Machine hours used: |
Job | Machine Hours |
301 | 27 |
302 | 38 |
303 | 30 |
304 | 72 |
305 | 41 |
306 | 25 |
Total | 233 |
f. Jobs completed: 301, 302, 303 and 305. | |
g. Jobs were shipped and customers were billed as follows: Job 301, $8,390; Job 302, $10,860; Job 303, $15,380. |
Required: | |||
A. | Journalize the entries to record the summarized operations. Record each item (items a-f) as an individual entry on January 31. Record item g as 2 entries. Refer to the Chart of Accounts for exact wording of account titles. | ||
B. | 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. | ||
C. | Prepare a schedule of unfinished jobs to support the balance in the work in process account.* | ||
D. | Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.*
|
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