Question

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:

1. Materials purchased on account, $2,690.
2. Materials requisitioned and factory labor used:
   

   Job No.	Materials		Factory Labor
   101	$1,840		$2,910
   102	2,240		3,930
   103	1,490		1,920
   104	5,040		7,220
   105	3,200		5,500
   106	2,340		3,490
   For general factory use	630		4,310

3. Factory overhead costs incurred on account, $3,510.
4. Depreciation of machinery and equipment, $2,070.
5. The factory overhead rate is $70 per machine hour. Machine hours used:
   

   Job No.	Machine Hours
   101		25
   102		24
   103		24
   104		80
   105		19
   106		27
   Total		199

6. Jobs completed: 101, 102, 103, and 105.
7. Jobs were shipped and customers were billed as follows: Job 101, $7,800; Job 102, $9,420; Job 105, $14,760.

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.

Entries	Description	Debit	Credit
a.
b.
c.
d.
e.
f.
g. Sale
g. Cost

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.

Work in Process
Bal.

Finished Goods
Bal.

3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.

Hildreth Company Schedule of Unfinished Jobs
Job	Direct Materials		Direct Labor		Factory Overhead		Total
	$		$		$		$
Balance of Work in Process, April 30							$

4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.

Hildreth Company Schedule of Completed Jobs
Job	Direct Materials		Direct Labor		Factory Overhead		Total
	$		$		$		$

Answer 1

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.

Entries	Description	Debit	Credit
a.	Raw materials inventory	$2690
	Accounts payable		$2690
	(To record materials purchased on account)
b.	Work in process	$41120
	Factory overhead ($630+4310)	$4940
	Raw materials inventory		$16780
	Wages payable		$29280
	(To record materials and labor assigned)
c.	Factory overhead	$3510
	Accounts payable		$3510
	(To record factory overhead costs incurred)
d.	Factory overhead	$2070
	Accumulated depreciation- Machinery and equipment		$2070
	(To record depreciation expense)
e.	Work in process (199*$70)	$13930
	Factory overhead		$13930
	(To record overhead applied)
f.	Finished goods	$29470
	Work in process		$29470
	(To record jobs transferred to finished goods)
g. Sale	Accounts receivable ($7800+9420+14760)	$31980
	Sales		$31980
	(To record sales)
g. Cost	Cost of goods sold	$24380
	Finished goods sold		$24380
	(To record cost of goods sold)

b. Work in process= $1840+2240+1490+5040+3200+2340+2910+3930+1920+7220+5500+3490= $41120

Raw materials inventory= $1840+2240+1490+5040+3200+2340+630= $16780

Wages payable= $2910+3930+1920+7220+5500+3490+4310= $29280

f. Finished goods= Job 101+102+103+105

Job 101= $1840+2910+(25*$70)= $6500

102= $2240+3930+(24*$70)= $7850

103= $1490+1920+(24*$70)= $5090

105= $3200+5500+(19*$70)= $10030

Finished goods= $6500+7850+5090+10030= $29470

g. Cost of goods sold= Job 101+102+105

= $6500+7850+10030= $

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.

Work in Process
b.	$41120	f.	29470
e.	13930
Bal.	$25580

Finished Goods
f.	29470	g.	24380
Bal.	5090

3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.

Hildreth Company Schedule of Unfinished Jobs
Job	Direct Materials		Direct Labor		Factory Overhead		Total
104	$5040		$7220		(80*$70)= 5600		$17860
106	2340		3490		(27*$70)= 1890		7720
Balance of Work in Process, April 30							$25580

4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.

Hildreth Company Schedule of Completed Jobs
Job	Direct Materials		Direct Labor		Factory Overhead		Total
103	$1490		$1920		(24*$70)= $1680		$5090