Entries and Schedules for Unfinished Jobs and Completed Jobs

Entries and Schedules for Unfinished Jobs and Completed Jobs

Tybee Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations:

Materials purchased on account, $1,870.

Materials requisitioned and factory labor used:

Factory overhead costs incurred on account, $4,390.

Depreciation of machinery and equipment, $1,700.

The factory overhead rate is $40 per machine hour. Machine hours used:

Jobs completed: 301, 302, 303, and 305.

Jobs were shipped and customers were billed as follows: Job 301, $7,370; Job 302, $7,980; Job 303, $14,850.

Required:

1. Journalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank.

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.

Job	Materials	Factory Labor
301	$2,300		$2,400
302	2,810		3,240
303	1,860		1,580
304	6,300		5,950
305	4,000		4,540
306	2,920		2,880
For general factory use	780		3,550

Solution

1 Journal Entries : Date Accounts Titles Debit $ Credit$ a Material 1870 AP 1870 b WIP 20190 F O/H 780 Material 20970 c WIP 20590 F O/H 3550 Lab payable 24140 d F O/H 4390 AP 4390 e F O/H 1700 Dep exp 1700 f WIP 9840 F O/H 9840 g FG Invent 22730 WIP 22730 (2300+2810+1860+4000+2400+3240+1580+4540) h AR 30200 Sales rev 30200 i COGS 14190 FG Invent 14190 (2300+2810+1860+2400+3240+1580) 2) t-Accounts: WIP a/c: b 20190 g 22730 c 20590 C/B 27890 f 9840 FG a/c : g 22730 i 14190 C/B 8540 3) schedule of unfinished jobs: job DM DL F O/h Total 304 6300 5950 2960 15514 306 2920 2880 1640 7746 4) schedule of completed jobs: job DM DL F O/h Total 305 4000 4540 1520 10365