Question

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

Print 1. PR. 16-02B ALGO (Algorithmic) 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: a. Materials purchased on account, $3,090. b. Materials requisitioned and factory labor used: Job No. Materials Factory Labor 101 $1,950 $2,260 102 3,050 1,490 103 104 2,380 1,580 5,340 3,390 2,480 5,600 105 4,270 2,710 3,340 For general factory use 660 C. Factory overhead costs incurred on account, $3,720. d. Depreciation of machinery and equipment, $1,600. e. The factory overhead rate is $60 per machine hour. Machine hours used: Job No. Machine Hours 101 102 103

Answer 1

1.

Entries	Description	Debit	Credit
a.	Materials	3090
	Accounts Payable		3090
b	Work in Process	36500
	Factory overhead [660+3340]	4000
	Materials		17780
	Wages Payable		22720
c	Factory overhead	3720
	Accounts Payable		3720
d	Factory overhead	1600
	Accumulated depreciation - machinery and equipment		1600
e	Work in Process	11460
	Factory overhead		11460
f	Finished goods	25650
	Work in Process		25650
	[Jobs no 101,102,103,105]
g sale	Accounts receivable	26140
	Sales		26140
	[6710+7740+11690]
g cost	Cost of goods sold	21620
	Finished goods		21620

2.

Work in process
(b)	36500	(f)	25650
( e)	11460
Bal	22310

Finished goods
(f)	25650	(g)	21620
Bal.	4030

3.

Schedule of unfinished goods
	Direct Materials	Direct Labor	Factory overhead	Total
No. 104	5340	5600	4440	15380
No.106	2480	2710	1740	6930
Balance of work in process, April 30				22310

4.

Schedule of completed jobs
	Direct Materials	Direct Labor	Factory overhead	Total
Finished goods, April 30 (Job 103)	1580	1490	960	4030

Workings:

Job	Materials	Direct Labor	Overheads [Machine hours *60]	Total
101	1950	2260	1380	5590
102	2380	3050	1020	6450
103	1580	1490	960	4030
104	5340	5600	4440	15380
105	3390	4270	1920	9580
106	2480	2710	1740	6930
For general factory	660	3340
Total	17780	22720	11460	47960