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, $3,320.
2. Materials requisitioned and factory labor used:
   

   Job No.	Materials		Factory Labor
   101	$2,300		$3,280
   102	2,810		4,430
   103	1,860		2,160
   104	6,300		8,130
   105	4,000		6,200
   106	2,920		3,940
   For general factory use	780		4,850

3. Factory overhead costs incurred on account, $4,390.
4. Depreciation of machinery and equipment, $2,330.
5. The factory overhead rate is $70 per machine hour. Machine hours used:
   

   Job No.	Machine Hours
   101		21
   102		21
   103		36
   104		65
   105		17
   106		29
   Total		189

6. Jobs completed: 101, 102, 103, and 105.
7. Jobs were shipped and customers were billed as follows: Job 101, $8,460; Job 102, $10,450; Job 105, $18,970.

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

Entries Description Debit Credit a. 3.320 Materials Accounts payable (to record materials puchased on account) 3,320 b. 48,330 5,630 Work in process Facotry Overhead Materials Wages payable (to record use of material and labor) 20,970 32,990 c. 4,390 Factory overhead Accounts payable (to record factory overhead incurred) 4.390 2,330 Factory overhead Accumulated Depreciation - Machinery and Equipment (to record depreciation expenses) 2,330 13,230 Work in process (189 hours * $ 70) Factory overhead (to record factory overhead applied) 13,230 f. 33,690 Finished goods Work in process (to record completion of jobs) 33,690

g. Sale 37,880 Accounts receivable (8,460 + 10,450 + 18,970) Sales (to record sale) 37,880 27,150 g. Cost Cost of goods sold Finished goods (to record cost of goods sold) 27,150 Working Notes 1) Cost of materials and Wages used Job No. 101 102 103 104 105 Materials 2,300 2,810 1,860 6,300 4,000 2,920 20,190 (20,190 + 28,140) (780 + 4,850) (20,190 + 780) (28,140 + 4,850) Factory Labor 3,280 4,430 2,160 8,130 6,200 3,940 28,140 48,330 5,630 20,970 32,990 106 Total Material and Factory labor used in work in proces General use of Materials and factory labor Total Materials used Total Factory labor used

Materials Overhead 2) Cost of completed Jobs Job No. 101 102 Factory labor 3,280 4,430 2,160 6,200 16,070 2,300 2,810 1,860 4,000 10,970 103 Total 7,050 8,710 6,540 11,390 33,690 1,470 1,470 2,520 1,190 6,650 105 Total Machine hours [A] Calculation of Overhead applied Overhead Applied Job No. 101 102 103 70 Rate per hour [B] 21 $ 21 $ 36 $ 17 $ Overhead applied [ AB] 1,470 1,470 2,520 1,190 70 70 70 105 Total Costs 3) Cost of goods sold Job No. 101 102 105 Total cost of goods sold 7,050 8,710 11,390 27,150

33,690 (b) (e) Bal. Work in Process 48,330 (f) 13,230 27,870 Finished Goods 33,690 (g) 6,540 (f) Bal. 27,150 3) Hildreth Company Schedule of Unfinished Overhead Job Direct materials Direct labor Factory overhead No. 104 6,300 $ 8,130 $ 4,550 No. 106 2,920 3,940 2,030 Balance of work in process, April 30 Total $ 18,980 8,890 27,870 Calculation of Overhead applied Overhead Applied Machine hours Rate per hour Job No. [A] [B] 104 65 $ 70 106 29 $ 70 Overhead applied [ AB] 4,550 2,030 Hildreth Company Schedule of Completed Jobs Direct materials Direct labor 1,860 $ Job Finished goods, April 30 (Job 103) Factory overhead 2,520 Total $ 6,540 2,160