Question

Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April 2016, the first month of operations:

	a. Materials purchased on account, $147,000.
	b. Materials requisitioned and factory labor used:

Job No.	Materials	Factory Labor
101	$19,320	$19,500
102	23,100	28,140
103	13,440	14,000
104	38,200	36,500
105	18,050	15,540
106	18,000	18,700
For general factory use	9,000	20,160

	c. Factory overhead costs incurred on account, $6,000.
	d. Depreciation of machinery and equipment, $4,100.
	e. The factory overhead rate is $40 per machine hour. Machine hours used:

Job	Machine Hours
101	154
102	160
103	126
104	238
105	160
106	174
Total	1,012

	f. Jobs completed: 101, 102, 103, and 105.
	g. Jobs were shipped and customers were billed as follows: Job 101, $62,900; Job 102, $80,700; Job 105, $45,500.

	Required:
A.	Journalize the entries to record the summarized operations. Record each item (items a-f) as an individual entry on April 30. Record item g as 2 entries on April 30. Refer to the Chart of Accounts for exact wording of account titles.
B.	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.
C.	Prepare a schedule of unfinished jobs to support the balance in the work in process account.*
D.	Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.* * Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries.

Chart of Accounts

CHART OF ACCOUNTS
Hildreth Company
General Ledger
ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 132 Work in Process 133 Factory Overhead 134 Finished Goods 141 Supplies 142 Prepaid Insurance 143 Prepaid Expenses 181 Land 191 Machinery and Equipment 192 Accumulated Depreciation-Machinery and Equipment LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 241 Lease Payable 251 Wages Payable 252 Consultant Fees Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary	REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expenses 532 Insurance Expense 533 Utilities Expense 534 Office Supplies Expense 540 Administrative Expenses 562 Depreciation Expense-Machinery and Equipment 590 Miscellaneous Expense 710 Interest Expense

Amount Descriptions

Amount Descriptions
Job No. 101
Job No. 102
Job No. 103
Job No. 104
Job No. 105
Job No. 106

Journal

Shaded cells have feedback.

A. Journalize the entries to record the summarized operations. Record each item (items a-f) as an individual entry on April 30. Record item g as 2 entries on April 30. Refer to the Chart of Accounts for exact wording of account titles.

How does grading work?

PAGE 10

JOURNAL

Score: 207/225

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1	✔	✔		✔
2		✔			✔
3	✔	✔		✔
4		✔		✔
5		✔			✔
6		✔			✔
7	✔	✔		✔
8		✔			✔
9	✔	✔		✔
10		✔			✔
11	✔	✔		✔
12		✔			✔
13	✔	✔		✔
14		✔			✔
15	✔
16
17	✔	✔		✔
18		✔			✔

Points:

40.48 / 44

Feedback

Check My Work

Materials are recorded in the materials inventory account until requisitioned.

All direct costs: materials and labor are recorded in the work in process account.

All indirect costs are considered overhead and are recorded in the factory overhead account.

Overhead is applied to Work in Process using a predetermined overhead rate.

The cost of completed jobs should be moved to the finished goods account.

The cost of sold jobs should be moved to the cost of goods sold account.

T Accounts

Shaded cells have feedback.

B. 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.

Work in Process
b		f
e
Bal.

Finished Goods
f		g
Bal.

Points:

5 / 12

Feedback

Check My Work

Post entries to the Work in Process T account and to the Finished Goods T account.

Schedule of Unfinished Jobs

Shaded cells have feedback.

C. Prepare a schedule of unfinished jobs to support the balance in the work in process account. Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries.

Question not attempted.

Score: 0/48

Tybee Industries Inc.

Schedule of Unfinished Jobs

1	Job	Direct Materials	Direct Labor	Factory Overhead	Total
2
3
4	Balance of Work in Process, April 30

Answer 1

A. In the books of Hildreth Company:

Transaction	Account Titles	Debit	Credit
		$	$
a.	Materials	147,000
	Accounts Payable		147,000
b.	Work in Process	262,490
	Factory Overhead	29,160
	Materials		139,110
	Wages Payable		152,540
c.	Factory Overhead	6,000
	Accounts Payable		6,000
d.	Factory Overhead	4,100
	Accumulated Depreciation - Machinery and Equipment		4,100
e.	Work in Process	40,480
	Factory Overhead		40,480
f.	Finished Goods	175,090
	Work in Process		175,090
g.	Accounts Receivable	189,100
	Sales		189,100
	Cost of Goods Sold	142,610
	Finished Goods		142,610

B. Materials

	$		$
Accounts Payable	147,000	Work in Process	130,110
		Factory Overhead	9,000
		Ending balance	7,890
	147,000		147,000

Work in Process

	$		$
Materials	130,110	Finished Goods	175,090
Wages Payable	132,380
Factory Overhead	40,480	Ending balance	127,880
	302,970		302,970

Finished Goods

	$		$
Work in Process	175,090	Cost of Goods Sold	142,610
		Ending balance	32,480
	175,090		175,090

Factory Overhead

	$		$
Materials	9,000	Work in Process	40,480
Wages Payable	20,160
Accounts Payable	6,000
Accumulated Depreciation - Machinery and Equipment	4,100
Factory overhead overapplied	1,220
	40,480		40,480

C. Hildreth Company

Schedule of Unfinished Jobs

Job	Direct Materials	Direct Labor	Factory Overhead	Total
	$	$	$	$
104	38,200	36,500	9,520	84,220
106	18,000	18,700	6,960	43,660
	56,200	55,200	16,480	127,880

COGS for Jobs 101, 102 and 105 :

	101	102	105	Total
Direct Materials	19,320	23,100	18,050	60,470
Direct Labor	19,500	28,140	15,540	63,180
Factory Overhead	6,160	6,400	6,400	18,960
Cost of Goods Sold	44,980	57,640	39,990	142,610