Entries and Schedules for Unfinished Jobs and Completed Jobs

Entries and Schedules for Unfinished Jobs and Completed Jobs Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations: a. Materials purchased on account, $2,940. b. Materials requisitioned and factory labor used: Job No. Materlals Factory Labor 101 102 103 104 105 $3,080 3,760 2,490 8,440 5,360 3,910 1,050 $2,190 2,960 1,450 5,430 4,140 2,630 3,240 106 For general factory use c. Factory overhead costs incurred on account, $5,880. d. Depreciation of machinery and equipment, $1,550. e. The factory overhead rate is $40 per machine hour. Machine hours used: Machine Hours Job No. 101 102 34 42

Solution

1) Journal Entries: Date Accounts Titles Debit $ Credit $ a Material 2940 AP 2940 b WIP 27040 Factory O/h 1050 Material 28090 c WIP 18800 Factory O/h 3240 Wages payable 22040 d Factory O/h 5880 AP 5880 e Factory O/h 1550 Depreciation 1550 f WIP 9160 Factory O/h 9160 g FG Inventory 31110 WIP 31110 h AR 33990 Sales revenue 33990 i COGS 20530 FG Inventory 20530 2) t-accounts: WIP ACCOUNT: b 27040 g 31110 c 18800 C/B 23890 f 9160 Total 55000 Total 55000 FINISHED GOODS INVENTORY: g 31110 i 20530 C/B 10580 3) Schedule for Unfinished Jobs: Job Mat Lab O/h total 104 8440 5430 2840 16814 106 3910 2630 640 7286 Schedule for Completed Job: Job Mat Lab O/h total 105 5360 4140 1080 10685