Question

Chaters was construct a product your company will set Define ob order costsystem come with a name for your company roup to answer the below a manufacturing company that i following data summaru the operations operations s a job order cost system. The March, the first month of A Materiais purchased on account. $15.500 B. Materials requisitioned and labor used: Factory Materials Labor $ 2,650 $ 1.770 1.240 420 No. 100 Job No. 101 Job No. 102 Job No. 103 Job No. 104 Job No. 105 For general factor use 1,500 3,420 1.000 2,100 1,760 C. Factory overhead costs incurred on account, $2,700 D. Depreciation of machinery, $1,750 E. Factory overhead is applied at a rate of 70% of direct labor cost F. Jobs completed: Nos. 101, 101, 102, 104 G. Jobs 100, 101, and 102 were shipped, and customers were billed for $8,100, $3,800, and 3,500 respectively. Questions: a. Journalize the entries to record these transactions (Transaction A-G) b. Determine the account balance for Work In Process and Finished Goods c. Prepare a schedule of unfinished jobs to support the balance in the work in process account. d. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account

Answer 1

a. Journal entries:

Sr No	Account	Debit	Credit
a	Materials	$15,500
	Accounts Payable		$15,500
b	Work in Process	$11,390
	Materials ($2,650 + $1,240 + $980 + $3,420 + $1,000 + $2,100)		$11,390
	Work in Process	$7,000
	Wages Payable ($1,770 + $650 + $420 + $1,900 + $500 + $1,760)		$7,000
	Factory Overhead	$1,100
	Materials		$450
	Wages Payable		$650
c	Factory Overhead	$2,700
	Accounts Payable		$2,700
d	Factory Overhead	$1,750
	Accumulated Depreciation-Machinery		$1,750
e	Work in Process	$4,900
	Factory Overhead ($7,000 * 70%)		$4,900
f	Finished goods	$11,548*
	Work in Process		$11,548
g	Accounts Receivable ($8,100 + $3,800 + $3,500)	$15,400
	Sales		$15,400
	Cost of Goods Sold	$9,698
	Finished goods		$9,698**

*Calculation value of finished goods for jobs 100, 101, 102, 104

Description	Material	Labor	Factory OH	Total
Job No. 100	$2,650	$1,770	$1,239	$5,659
Job No. 101	$1,240	$650	$455	$2,345
Job No. 102	$980	$420	$294	$1,694
Job No. 104	$1,000	$500	$350	$1,850
Total	$5,870	$3,340	$2,338	$11,548

**Calculation of finished goods for jobs 100, 101, 102

Description	Material	Labor	Factory OH	Total
Job No. 100	$2,650	$1,770	$1,239	$5,659
Job No. 101	$1,240	$650	$455	$2,345
Job No. 102	$980	$420	$294	$1,694
Total	$4,870	$2,840	$1,988	$9,698

b. Calculation of account balance for Work in Process

Materials	$11,390
Add: Labor	$7,000
Add: Factory Overhead	$4,900
Less: Transferred to Finished Goods	$11,548
Account Balance for Work in Process	$11,742

Calculation of account balance for Finished Goods

Transferred from Work in Process	$11,548
Less: Transferred to Cost of Goods Sold	$9,698
Account Balance for Finished Goods	$1,850

c. Schedule of unfinished jobs

Description	Material	Labor	Factory OH	Total
Job No. 103	$3,420	$1,900	$1,330	$6,650
Job No. 105	$2,100	$1,760	$1,232	$5,092
Total	$5,520	$3,660	$2,562	$11,742

d. Schedule of finished jobs

Description	Material	Labor	Factory OH	Total
Job No. 104	$1,000	$500	$350	$1,850