Question
Tybee Industries Inc. uses ajob order cost system. The following data summarize the operations related to production for January 2016, the first month of operations:
Tybee Industries Inc. uses ajob 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, $29,800.b.Materials requisitionedand factory labor used:Job
Materials
Factory Labor
301$ 2,960$2,7753023,6203,7503032,4001,8753048,1006,8603055,1005,2503063,7503,340For general factory use1,0804,100c. 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:JobMachine Hours301253023630330304723054030625Total228f. 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 (itemsa-f) as an individual entry on January 31. Record itemgas 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.make a schedule of unfinished jobs to support the balance in the work in process account.*D.make 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.
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