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: Materials purchased on account, $3,390. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $2,800 $2,870 302 3,420 3,870 303 2,270 1,890 304 7,670 7,120 305 4,870 5,420 306 3,560 3,440 For general factory use 950 4,250 Factory overhead costs incurred on account, $5,350. Depreciation of machinery and equipment, $2,040. The factory overhead rate is $60 per machine hour. Machine hours used: Job Machine Hours 301 21 302 41 303 30 304 71 305 27 306 39 Total 229 Jobs completed: 301, 302, 303, and 305. Jobs were shipped and customers were billed as follows: Job 301, $8,320; Job 302, $11,700; Job 303, $17,280. 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. 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. Tybee Industries Inc. Schedule of Unfinished Jobs Job Direct Materials Direct Labor Factory Overhead Total $ $ $ $ Balance of Work in Process, January 30 $ 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account. Tybee Industries Inc. Schedule of Completed Jobs Job Direct Materials Direct Labor Factory Overhead Total $ $ $ $

Answer 1

	Direct	Direct	Overhead	total
Job	materials	labor	applied
301	2,800	2,870	1260	6,930
302	3,420	3,870	2460	9,750
303	2,270	1,890	1800	5,960
304	7,670	7,120	4260	19,050
305	4,870	5,420	1620	11,910
306	3,560	3,440	2340	9,340
total	24,590	24,610	13740	62,940
total cost of jobs completed
jobs
301			6,930
302			9,750
303			5,960
305			11,910
total cost of jobs completed			34,550
cost of jobs sold and sale price
jobs			COGS		Sale
301			6,930		8,320
302			9,750		11,700
303			5,960		17,280
total			22,640		37,300
1)	Journal Entries
	Account titles & Explanations				Debit	Credit
a)	Raw materials inventory				3,390
	Accounts payable					3,390
b)	Work in process inventory				49,200
	Factory overhead				5,200
	Raw materials invetory					25,540
	Factory wages payable					28,860
c)	Factory overhead				5,350
	accounts payable					5,350
d)	Factory overhead				2,040
	Accumulated depreciation					2,040
e)	work in process inventory				13740
	Factory overhead					13740
f)	finished goods inventory				34,550
	work in process inventory					34,550
g)	accounts receivable				37,300
	sales					37,300
	Cost of goods sold				22,640
	Finished goods inventory					22,640
2)	T-Account
	work in process inventory
	b)	49,200	f)	34,550
	e)	13740
	end bal	28,390
	finished goods inventory
	f)	34,550	g)	22,640
	end bal	11,910
3)	Schedule of unfinished jobs
		Direct	Direct	Overhead	total
	Job	materials	labor	applied
	304	7,670	7,120	4260	19,050
	306	3,560	3,440	2340	9,340
	total				28,390
4)	Schedule of finished jobs
		Direct	Direct	Overhead	total
	Job	materials	labor	applied
	305	4,870	5,420	1620	11,910