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: a. Materials purchased on account, $2,330. b. Materials requisitioned and factory labor used: Job No. Materials Factory Labor $2,300 $2,230 2,720 3,110 1,810 1,520 101 102 103 104 105 106 6,110 5,700 3,880 4,350 2,760 2,830 760 For general factory use 3,400 c. Factory overhead costs incurred on account, $4,260. d. Depreciation of machinery and equipment, $1,630. e. The factory overhead rate is $60 per machine hour. Machine hours used:

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Answer 1

Entries Description Debit Credit a. 2,330 Materials Accounts payable b. 39,320 4,160 Work in process Facotry Overhead Materials Wages payable 20,140 23,140 C. 4,260 Factory overhead Accounts payable 4,260 d. 1,630 Factory overhead Accumulated Depreciation - Machinery and Equipment 1,630 e. 13,200 Work in process (220 hours x $ 60) Factory overhead 13,200 f. 28,520 Finished goods Work in process 28,520 29,870 g. Sale Accounts receivable (7,810 +9,440 + 12,620) Sales 29,870 24,170 g. Cost Cost of goods sold Finished goods 24,170

Working Notes 1) Cost of materials and Wages used Job No. 101 102 103 104 105 106 Materials Factory Labor 2,230 2,300 2,720 3,110 1,810 1,520 6,110 5,700 3,880 4,350 2,830 2,760 19,580 19,740 (19,580 +19,740)| 39,320 (760+ 3,400) 4,160 (19,580 + 760) 20,140 (19,740 + 3,400) 23,140 Total Material and Factory labor used in work in proces General use of Materials and factory labor Total Materials used Total Factory labor used 2) Cost of completed Jobs Job No. 101 102 103 105 Total Materials 2,230 2,720 1,810 3,880 10,640 Factory labor Overhead 2,300 3,110 1,520 4,350 11,280 1,980 2,040 1,020 1,560 6,600 Total 6,510 7,870 4,350 9,790 28,520

Calculation of Overhead applied Overhead Applied Job No. 101 102 103 105 Machine hours Rate per hour Overhead applied [A] [B] [ AB] 33 $ 60 1,980 34 $ 60 2,040 17 $ 60 1,020 B 26 $ 60 1,560 3) Cost of goods sold Job No. 101 102 105 Total cost of goods sold Total Costs 6,510 7,870 9,790 24,170

28,520 Work in Process 39,320 (f) 13,200 24,000 Bal. Finished Goods 28,520 (g) 4,350 24,170 Bal. Hildreth Company Schedule of Unfinished Overhead Job Direct materials Direct labor Factory overhead Total No. 104 6,110 $ 5,700 $ No. 106 2,830 2,760 2,100 Balance of work in process, April 30 7,690 24,000 Calculation of Overhead applied Overhead Applied Machine hours Rate per hour Job No. [A] [B] 104 75 $ 60 106 L 35 $ 60 Overhead applied [ AB] 4,500 2,100 Hildreth Company Schedule of Completed Jobs Direct materials Direct labor $ 1,810 $ lob F actory overhead Total 1,520 $ 1,020 $ 4,350 Finished goods, April 30 (Job 103)