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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, $30,100. | |
b. Materials requisitioned and factory labor used: |
Job | Materials | Factory Labor |
---|---|---|
301 | $3,110 | $2,720 |
302 | 3,710 | 3,810 |
303 | 2,400 | 1,970 |
304 | 8,500 | 6,870 |
305 | 5,210 | 5,410 |
306 | 3,850 | 3,290 |
For general factory use | 1,080 | 4,120 |
c. Factory overhead costs incurred on account, $5,440. | |
d. Depreciation of machinery and equipment, $1,980. | |
e. The factory overhead rate is $53 per machine hour. Machine hours used: |
Job | Machine Hours |
301 | 25 |
302 | 35 |
303 | 32 |
304 | 73 |
305 | 38 |
306 | 24 |
Total | 227 |
f. Jobs completed: 301, 302, 303 and 305. | |
g. Jobs were shipped and customers were billed as follows: Job 301, $7,990; Job 302, $10,960; Job 303, $14,290. |
Required: | |||
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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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CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tybee Industries Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amount Descriptions | |
Job No. 301 | |
Job No. 302 | |
Job No. 303 | |
Job No. 304 | |
Job No. 305 | |
Job No. 306 |
JOURNAL
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | |
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1 |
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2 |
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3 |
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4 |
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5 |
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6 |
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7 |
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8 |
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9 |
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10 |
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11 |
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12 |
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13 |
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14 |
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15 |
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16 |
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17 |
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18 |
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Work in Process | |||
a | |||
Bal. |
Finished Goods | |||
Bal. |
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 |
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Tybee Industries Inc. |
Schedule of Completed Jobs |
1 | Job | Direct Materials | Direct Labor | Factory Overhead | Total |
2 |
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