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:

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.
Instructions
1. Journalize the entries to record the summarized operations.
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.

Transcribed Image Text:

Job 301 302 303 304 305 306 For general factory use Materials 2,960 3,620 2,400 8,100 5,100 3,750 1,080 Factory Labor $2,775 3,750 1,875 6,860 5,250 3,340 4,100