Waddell Equipment Company uses a job order cost system. The following data summarize the operations related to production for April 20Y4, the first month of operations:

a. Materials purchased on account, $36,000.

b. Materials requisitioned and factory labor used:

c. Factory overhead costs incurred on account, $6,000.
d. Depreciation of machinery and equipment, $1,550.
e. The factory overhead rate is $40 per machine hour. Machine hours used:
Job ___________Machine Hours
No. 401 .......................... 38
No. 402 .......................... 30
No. 403 .......................... 18
No. 404 .......................... 56
No. 405 .......................... 24
No. 406 .......................... 14
Total ............................ 180
f. Jobs completed: 401, 402, 403, and 405.
g. Jobs were shipped and customers were billed as follows: Job 401 $22,750, Job 402 $16,600, Job 403 $8,400.

Instructions
1. Prepare a schedule summarizing manufacturing costs by job for April. Use the following form:

2. Prepare a schedule of jobs finished in April.
3. Prepare a schedule of jobs sold in April. What account does this schedule support for the month of April?
4. Prepare a schedule of completed jobs on hand as of April 30, 20Y4. What account does this schedule support?
5. Prepare a schedule of unfinished jobs as of April 30, 20Y4. What account does this schedule support?
6. Determine the gross profit for April based upon the jobs sold. Ignore the difference between actual and applied factory overhead.

Transcribed Image Text:

Jept Materials 5,500 4,000 2,400 7,100 3,200 1,850 3,150 Factory Labor No. 401 No. 402 No. 403 No. 404 No. 405 No. 406 For general factory use $6,650 4,775 1,875 8,500 4,000 2,200 1,500 Job Direct Materials Direct Labor Factory Overhead Total