Question

Schedules for Unfinished Jobs and Completed Jobs Waddell Equipment Company uses a job order cost system. The following data summarize the operations related to production for April 2014, the first month of operations: a. Materials purchased on account: $140,400. b. Materials requisitioned and factory labor used: Job M aterials Factory Labor No. 401 $14,100 $13,200 No. 402 17,250 17,820 No. 403 11,400 8,940 No. 404 38,700 32,760 No. 405 24,600 24,900 No. 405 17,880 15,900 For general factory use 5,160 19,500 c. Factory overhead costs incurred on account, $18,000. d. Depreciation of machinery and equipment, $6.240. e. The factory overhead rate is $50 per machine hour. Machine hours used: Job Machine Hours No. 401 No. 402 No. 403 No. 404 No. 405 No. 405 Total f. Jobs completed: 401, 402, 403, and 405. 9. Jobs were shipped and customers were billed as follows: Job 401, $39,000; Job 402. $54.000; Job 403. $72,000. Instructions: 1. Prepare a schedule summarizing manufacturing costs by job for April. Waddell Equipment Company Schedule Summarizing Manufacturing Costs For the Month of April 30, 2014 Job Direct Materials Direct Labor Factory Overhead Jarhead Total Total 2. Prepare a schedule of jobs finished in April. Waddell Equipment Company Schedule of Jobs Finished For the Month of April 30, 2014 Direct Labor Factory Overhead Total Job Direct Materials No. 401 $ Total 3. Prepare a schedule of jobs sold in April. Waddell Equipment Company Schedule of Jobs Sold For the Month of April 30, 2014 No. 401 $ No. 402 Total $ What account does this schedule support for the month of April? 4. Prepare a schedule of completed jobs on hand as of April 30, 2014. Waddell Equipment Company Schedule of Completed Jobs on Hand For the Month of April 30, 2014 Direct Materials Direct Labor Factory Overhead Total Finished Goods, April 30 (Job 405) What account does this schedule support? 5. Prepare a schedule of unfinished jobs as of April 30, 2014. Waddell Equipment Company Schedule of Unfinished Jobs For the Month of April 30, 2014 Direct Labor Direct Materials Factory Overhead Tota No. 404 $ No. 406 Balance of Work in Process, April 30 What account does this schedule support? 6. Determine the gross profit for April based upon the jobs sold. Ignore the difference between actual and applied factory overhead.

Answer 1

				A	B=A*$50
			Job	Machine Hour	Applied Overhead
			401	38	$1,900
			402	30	$1,500
			403	18	$900
			404	56	$2,800
			405	24	$1,200
			406	14	$700
			Total	180	$9,000
			SCHEDULE SUMMARISING MANUFACTURING COST
				C	D	E	F=C+D+E
			Job	Materials	Factory Labor	Applied Overhead	Total Manufacturing Cost	Sales Revenue
			401	$14,100	$13,200	$1,900	$29,200	$39,000
			402	$17,250	$17,820	$1,500	$36,570	$54,000
			403	$11,400	$8,940	$900	$21,240	$72,000
			404	$38,700	$32,760	$2,800	$74,260
			405	$24,600	$24,900	$1,200	$50,700
			406	$17,880	$15,900	$700	$34,480
			TOTAL	$123,930	$113,520	$9,000	$246,450	$165,000
			SCHEDULE OF JOBS FINISHED IN APRIL
			Job	Materials	Factory Labor	Applied Overhead	Total Manufacturing Cost
			401	$14,100	$13,200	$1,900	$29,200
			402	$17,250	$17,820	$1,500	$36,570
			403	$11,400	$8,940	$900	$21,240
			405	$24,600	$24,900	$1,200	$50,700
			TOTAL	$67,350	$64,860	$5,500	$137,710
			SCHEDULE OF JOBS SOLD IN APRIL
			Job No.	Cost	Sales Revenue
			401	$29,200	$39,000
			402	$36,570	$54,000
			403	$21,240	$72,000
			TOTAL	$87,010	$165,000
		Account supported: Cost of goods sold	$87,010
			SCHEDULE OF COMPLETED JOB In HAND
			Job No.	Materials	Factory Labor	Applied Overhead	Total Manufacturing Cost
			405	$24,600	$24,900	$1,200	$50,700
		Account supported: Finished goods inventory	$50,700
			SCHEDULE OF UNFINISHED JOBS
			Job	Materials	Factory Labor	Applied Overhead	Total Manufacturing Cost
			404	$38,700	$32,760	$2,800	$74,260
			406	$17,880	$15,900	$700	$34,480
			Total	$56,580	$48,660	$3,500	$108,740
		Account Supported: Work in process inventory	$108,740
		Gross Profit:
		Sales Revenue	$165,000
		Cost of goods sold	$87,010
		Gross Profit:	$77,990