Tybee Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations:

	a. Materials purchased on account, $29,050.
	b. Materials requisitioned and factory labor used:

Job	Materials	Factory Labor
301	$2,870	$2,870
302	3,690	3,770
303	2,300	1,920
304	8,510	7,050
305	5,000	5,250
306	3,770	3,240
For general factory use	1,030	4,110

	c. Factory overhead costs incurred on account, $5,400.
	d. Depreciation of machinery and equipment, $2,000.
	e. The factory overhead rate is $52 per machine hour. Machine hours used:

Job	Machine Hours
301	27
302	35
303	29
304	70
305	39
306	25
Total	225

	f. Jobs completed: 301, 302, 303 and 305.
	g. Jobs were shipped and customers were billed as follows: Job 301, $8,310; Job 302, $11,120; Job 303, $14,320.

Required:

1.

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.

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.

3.

Prepare a schedule of unfinished jobs to support the balance in the work in process account.*

4.

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.

1. 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.

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JOURNAL

ACCOUNTING EQUATION

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