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, $2,820.
2. Materials requisitioned and factory labor used:
   

   Job No.	Materials		Factory Labor
   101	$2,600		$2,090
   102	3,170		2,820
   103	2,110		1,380
   104	7,120		5,180
   105	4,520		3,950
   106	3,300		2,510
   For general factory use	880		3,090

3. Factory overhead costs incurred on account, $4,970.
4. Depreciation of machinery and equipment, $1,480.
5. The factory overhead rate is $65 per machine hour. Machine hours used:
   

   Job No.	Machine Hours
   101		28
   102		26
   103		20
   104		71
   105		20
   106		18
   Total		183

6. Jobs completed: 101, 102, 103, and 105.
7. Jobs were shipped and customers were billed as follows: Job 101, $7,810; Job 102, $9,220; Job 105, $13,890.

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

job sheet
		Materials	labor	overhead	total
job 101		2,600	2,090	1820	6,510
job 102		3,170	2,820	1690	7,680
job 103		2,110	1,380	1300	4,790
job 104		7,120	5,180	4615	16,915
job105		4,520	3,950	1300	9,770
job 106		3,300	2,510	1170	6,980
total		22,820	17,930	11895	52,645
Entries	Description				Debit	Credit
a.	Raw materials inventory				2,820
	Accounts payable					2,820
b.	Work in process inventory				40,750
	Factory overhead				3970
	Raw materials inventory					23,700
	Factory payroll					21,020
c.	Factory overhead				4,970
	Accounts payable					4,970
d.	Factory overhead				1,480
	Accumulated depreciation					1,480
e.	Work in process inventory				11,895
	Factory overhead					11,895
f.	Finished goods inventory				28,750
	work in process inventory					28,750
	(job 101,102,103 &105)
g.	Accounts receivable				30920
	sale					30,920
	cost of good sold				23,960
	finished goods inventory					23,960
	(44,980+57640+39,990)
2)	work in process
	b.	40,750	28,750	f.
	e.	11,895
	bal	23,895
	Finished goods
	f.	28,750	23,960	g.
	bal	4,790
3)	Schedule of unfinished jobs
	job	Direct	direct	FOH	total
		materials	labor
	job 104	7,120	5,180	4615	16,915
	job 106	3,300	2,510	1170	6,980
	Balance in work in process ,april 30				23,895
4)	Schedule of completed jobs
		job	Direct	direct	FOH	total
			materials	labor
		job 103	2,110	1,380	1,300	4,790