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, $2,000. b. Materials requisitioned and factory labor used: Job No. Materials Factory Labor $1,960 $1,780 2.400 1,170 4,410 2,390 1,590 5,370 3,410 2,490 670 106 3,360 2.140 2,630 For general factory use c. Factory overhead costs incurred on account, $3,740. d. Depreciation of machinery and equipment, $1,260. e. The factory overhead rate is $75 per machine hour. Machine hours used: Job No. Machine Hours 101

Answer 1

1.

Entries	Description	Debit	Credit
a.	Materials	2000
	Accounts Payable		2000
b	Work in Process	32470
	Factory overhead	3300
	Materials		17880
	Wages Payable		17890
c	Factory overhead	3740
	Accounts Payable		3740
d	Factory overhead	1260
	Accumulated depreciation - machinery and equipment		1260
e	Work in Process	16200
	Factory overhead		16200
f	Finished goods	26685
	Work in Process		26685
g sale	Accounts receivable	30570
	Sales		30570
g cost	Cost of goods sold	21600
	Finished goods		21600

2.

Work in process
(b)	32470	(f)	26685
( e)	16200
Bal	21985

Finished goods
(f)	26685	(g)	21600
Bal.	5085

3.

Schedule of unfinished goods
	Direct Materials	Direct Labor	Factory overhead	Total
No. 104	5370	4410	5925	15705
No.106	2490	2140	1650	6280
Balance of work in process, April 30				21985

4.

Schedule of completed jobs
	Direct Materials	Direct Labor	Factory overhead	Total
Finished goods, April 30 (Job 103)	1590	1170	2325	5085

Workings:

Job	Materials	Direct Labor	Overheads	Total
101	1960	1780	2925	6665
102	2390	2400	1725	6515
103	1590	1170	2325	5085
104	5370	4410	5925	15705
105	3410	3360	1650	8420
106	2490	2140	1650	6280
For general factory	670	2630
Total	17880	17890	16200