Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.*
* Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries. 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. Prepare a schedule of unfinished jobs to support the balance in the work in process account. Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries.

Tybee Industries Inc. Schedule of Unfinished Jobs

1 Job Direct Materials Direct Labor Factory Overhead Total 2 3 4 Balance of Work in Process, January 30 Prepare a schedule of completed jobs on hand to support the balance in the finished goods account. Refer to the list of Amount Descriptions list for the exact wording of the answer choices for text entries.

Tybee Industries Inc. Schedule of Completed Jobs

1 Job Direct Materials Direct Labor Factory Overhead Total 2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Linking Auditing And Meta Evaluation Enhancing Quality In Applied Research

Authors: Thomas A. Schwandt, Edward S. Halpern

1st Edition

0803929684, 978-0803929685

More Books

Students also viewed these Accounting questions