Question

Entries and Schedules for Unfinished Jobs and Completed Jobs Tybee Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations: a. Materials purchased on account, $2,860 b. Materials requisitioned and factory labor used Job 301 302 303 304 305 306 For general factory use Materials Factory Labor $3,380 4,120 2,740 9,260 5,880 4,290 1,150 $2,940 3,970 1,940 7,290 5,560 3,530 4,350 C. Factory overhead costs incurred on account, $6,460 d. Depreciation of machinery and equipment, $2,090 e. The factory overhead rate is $55 per machine hour. Machine hours used: Job 301 302 303 304 305 306 Total Machine Hours 18 45 38 36 20 234 f. Jobs completed: 301, 302, 303, and 305 g. Jobs were shipped and customers were billed as follows: Job 301, $8,770; Job 302, $12,680; Job 303, $19,630 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.

Answer 1

		Direct	Direct	Overhead	total
	Job	materials	labor	applied
	301	3,380	2,940	990	7,310
	302	4,120	3,970	2475	10,565
	303	2,740	1,940	2090	6,770
	304	9,260	7,290	4235	20,785
	305	5,880	5,560	1980	13,420
	306	4,290	3,530	1100	8,920
	total	29,670	25,230	12870	67,770
	total cost of jobs completed
	jobs
	301			7,310
	302			10,565
	303			6,770
	305			13,420
	total cost of jobs completed			38,065
	cost of jobs sold and sale price
	jobs			COGS		Sale
	301			7,310		8,770
	302			10,565		12,680
	303			6,770		19,630
	total			24,645		41,080
	1)	Journal Entries
		Account titles & Explanations				Debit	Credit
	a)	Raw materials inventory				2,860
		Accounts payable					2,860
	b)	Work in process inventory				54,900
		Factory overhead				5,500
		Raw materials invetory					30,820
		Factory wages payable					29,580
	c)	Factory overhead				6,460
		accounts payable					6,460
	d)	Factory overhead				2,090
		Accumulated depreciation					2,090
	e)	work in process inventory				12870
		Factory overhead					12870
	f)	finished goods inventory				38,065
		work in process inventory					38,065
	g)	accounts receivable				41,080
		sales					41,080
		Cost of goods sold				24,645
		Finished goods inventory					24,645
	2)	T-Account
		work in process inventory
		b)	54,900	f)	38,065
		e)	12870
		end bal	29,705
		(note entry b includes DM and DL
		if required u can show separately)
		finished goods inventory
		f)	38,065	g)	24,645
		end bal	13,420
	3)	Schedule of unfinished jobs
			Direct	Direct	Overhead	total
		Job	materials	labor	applied
		304	9,260	7,290	4235	20,785
		306	4,290	3,530	1100	8,920
		total				29,705
	4)	Schedule of finished jobs
			Direct	Direct	Overhead	total
		Job	materials	labor	applied
		305	5,880	5,560	1980	13,420