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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, $29,800. | |
b. Materials requisitioned and factory labor used: |
Job | Materials | Factory Labor |
---|---|---|
301 | $ 2,960 | $2,775 |
302 | 3,620 | 3,750 |
303 | 2,400 | 1,875 |
304 | 8,100 | 6,860 |
305 | 5,100 | 5,250 |
306 | 3,750 | 3,340 |
For general factory use | 1,080 | 4,100 |
c. Factory overhead costs incurred on account, $5,500. | |
d. Depreciation of machinery and equipment, $1,980. | |
e. The factory overhead rate is $54 per machine hour. Machine hours used: |
Job | Machine Hours |
301 | 25 |
302 | 36 |
303 | 30 |
304 | 72 |
305 | 40 |
306 | 25 |
Total | 228 |
f. Jobs completed: 301, 302, 303 and 305. | |
g. Jobs were shipped and customers were billed as follows: Job 301, $8,250; Job 302, $11,200; Job 303, $15,000. |
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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