Homework SoursePROBLEM IV Derby Music Company specializes in producing and
PROBLEM IV
Derby Music Company specializes in producing and packaging compact discs (CDs) for the music recording industry. Derby use a job order cost system. The following data summarize the operations related to production for March, the first month of operations:
a. Materials purchased on account. $15,500.
b. Materials requisitioned and labor used.
?Materials?Factory Labor
Job No. 100?$2,650?? $1,770
Job No. 101? 1,240?? 650
Job No. 102? 980?? 420
Job No. 103? 3,420?? 1,900
Job No. 104? 1,000?? 500
Job No. 105? 2,100?`?? 1,760
For general factory use? 450?? 650
c. Factory overhead costs incurred on account. $2,700
d. Depreciation of machinery. $1,750
e. Factory overhead is applied at a rate of 70% of direct labor cost.
f. Jobs completed: Nos. 100, 101, 102, 104
g. Jobs 100, 101, 102 were shipped and customers were billed for $8,100, $3,800 and $3,500 respectively.
INSTRUCTIONS
1. Journalize the entries to record the transactions indentified above.
2. Determine the account balances for Work in Process and Finished Goods.
3. Prepare a schedule of unfinished jobs to support the balances in the work in process account
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
PROBLEM IV
Derby Music Company specializes in producing and packaging compact discs (CDs) for the music recording industry. Derby use a job order cost system. The following data summarize the operations related to production for March, the first month of operations:
a. Materials purchased on account. $15,500.
b. Materials requisitioned and labor used.
?Materials?Factory Labor
Job No. 100?$2,650?? $1,770
Job No. 101? 1,240?? 650
Job No. 102? 980?? 420
Job No. 103? 3,420?? 1,900
Job No. 104? 1,000?? 500
Job No. 105? 2,100?`?? 1,760
For general factory use? 450?? 650
c. Factory overhead costs incurred on account. $2,700
d. Depreciation of machinery. $1,750
e. Factory overhead is applied at a rate of 70% of direct labor cost.
f. Jobs completed: Nos. 100, 101, 102, 104
g. Jobs 100, 101, 102 were shipped and customers were billed for $8,100, $3,800 and $3,500 respectively.
INSTRUCTIONS
1. Journalize the entries to record the transactions indentified above.
2. Determine the account balances for Work in Process and Finished Goods.
3. Prepare a schedule of unfinished jobs to support the balances in the work in process account
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
PROBLEM IV
Derby Music Company specializes in producing and packaging compact discs (CDs) for the music recording industry. Derby use a job order cost system. The following data summarize the operations related to production for March, the first month of operations:
a. Materials purchased on account. $15,500.
b. Materials requisitioned and labor used.
?Materials?Factory Labor
Job No. 100?$2,650?? $1,770
Job No. 101? 1,240?? 650
Job No. 102? 980?? 420
Job No. 103? 3,420?? 1,900
Job No. 104? 1,000?? 500
Job No. 105? 2,100?`?? 1,760
For general factory use? 450?? 650
c. Factory overhead costs incurred on account. $2,700
d. Depreciation of machinery. $1,750
e. Factory overhead is applied at a rate of 70% of direct labor cost.
f. Jobs completed: Nos. 100, 101, 102, 104
g. Jobs 100, 101, 102 were shipped and customers were billed for $8,100, $3,800 and $3,500 respectively.
INSTRUCTIONS
1. Journalize the entries to record the transactions indentified above.
2. Determine the account balances for Work in Process and Finished Goods.
3. Prepare a schedule of unfinished jobs to support the balances in the work in process account
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
Solution
Solution 1:
Solution 2:
Solution 3:
Solution 4:
| Schedule of Unifinished Job, Jobs Completed on hand, jobs completed and sold | ||||||||
| Particualrs | Unifinished Jobs | Job completed on hand | Job completed and sold | |||||
| Job No 103 | Job No 105 | Total | Job No 104 | Job No 100 | Job No 101 | Job No 102 | Total | |
| Direct material | $3,420.00 | $2,100.00 | $5,520.00 | $1,000.00 | $2,650.00 | $1,240.00 | $980.00 | $4,870.00 |
| Direct labor | $1,900.00 | $1,760.00 | $3,660.00 | $500.00 | $1,770.00 | $650.00 | $420.00 | $2,840.00 |
| Factory overhead applied (70% of DL Cost) | $1,330.00 | $1,232.00 | $2,562.00 | $350.00 | $1,239.00 | $455.00 | $294.00 | $1,988.00 |
| Total | $6,650.00 | $5,092.00 | $11,742.00 | $1,850.00 | $5,659.00 | $2,345.00 | $1,694.00 | $9,698.00 |
