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, $2,000.
2. Materials requisitioned and factory labor used:
   

   Job No.	Materials		Factory Labor
   101	$1,960		$1,780
   102	2,390		2,400
   103	1,590		1,170
   104	5,370		4,410
   105	3,410		3,360
   106	2,490		2,140
   For general factory use	670		2,630

3. Factory overhead costs incurred on account, $3,740.
4. Depreciation of machinery and equipment, $1,260.
5. The factory overhead rate is $75 per machine hour. Machine hours used:
   

   Job No.	Machine Hours
   101		39
   102		23
   103		31
   104		79
   105		22
   106		22
   Total		216

6. Jobs completed: 101, 102, 103, and 105.
7. Jobs were shipped and customers were billed as follows: Job 101, $8,000; Job 102, $7,820; Job 105, $14,750.

Required:

1. Journalize the entries to record the summarized operations. 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

Job	Material	Labor	Factory overhead
101	$1,960	$1,780	$2,925 (39*$75)
102	2,390	2,400	1,725 (23*$75)
103	1,590	1,170	2,325 (31*$75)
105	3,410	3,360	1,650 (22*$75)
Total	$9,350	$8,710	$8,625

1.

Entries	Description	Debit	Credit
a.	Accounts payable	$2,000
	Raw material inventory		$2,000
b	Work in process inventory (17,210+15,260)	$32,470
	Factory overhead	3,300
	Raw material inventory		$17,880
	Wages payable		17,890
c.	Factory overhead	$3,740
	Accounts payable		$3,740
d.	Factory overhead	$1,260
	Accumulated depreciation-Machinery and Equipment		$1,260
e	Work in process inventory (216*$75)	$16,200
	Factory overhead		$16,200
f	Finished goods inventory (9,350+8,710+8,625 (115*$75)	$26,685
	Work in process inventory		$26,685
g	Accounts receivable	$30,570
	Sales		$30,570
g	Cost of goods sold (7,760+7,540+6,300 (84*$75)	$21,600
	Finished goods inventory		$21,600

2.

Work in process
Beg.Bal.	$0	f	$26,685
b	32,470
e	16,200
End.Bal.	$21,985
Finished Goods
Beg.Bal.	$0	g	$21,600
f	26,685
End.Bal.	$5,085

3.

Hildreth Company Schedule of Unfinished Jobs
Job	Direct material	Direct labor	Factory overhead	Total
104	$5,370	$4,410	$5,925 (79*$75)	$15,705
106	2,490	2,140	1,650 (22*$75)	6,280
Balance of work in process, April 30				$21,985

4.

Hildreth Company Schedule of Completed Job
Job	Direct material	Direct labor	Factory overhead	Total
103	$1,590	$1,170	$2,325 (31*$75)	$5,085
Balance of finished goods, April 30				$5,085