Question

Entries and Schedules for Unfinished Jobs and Completed Jobs

Staircase Equipment Company uses a job order cost system. The following data summarize the operations related to production for April 2014, the first month of operations:

a. Materials purchased on account, $3,360.

b. Materials requisitioned and factory labor used:

Job	Materials		Factory Labor
No. 301	$2,780		$2,320
No. 302	3,390		3,130
No. 303	2,250		1,530
No. 304	7,620		5,750
No. 305	4,840		4,380
No. 306	3,530		2,780
For general factory use	950		3,430

c. Factory overhead costs incurred on account, $5,310.

d. Depreciation of machinery and equipment, $1,650.

e. The factory overhead rate is $35 per machine hour. Machine hours used:

Job	Machine Hours
No. 301	44
No. 302	44
No. 303	24
No. 304	69
No. 305	26
No. 306	25
Total	232

f. Jobs completed: 301, 302, 303, and 305.

g. Jobs were shipped and customers were billed as follows: Job 301, $7,970; Job 302, $9,670; Job 303, $13,400.

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 or enter "0".

Total 232 f. Jobs completed: 301, 302, 303, and 305 g. Jobs were shipped and customers were billed as follows: Job 301, $7,970; Job 302, $9,670; Job 303, $13,400. Required: 1. Joumalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0". Entries Description Debit Credit Materials Accounts payable Work in process Materials Wages Payable Factory overhead Accounts payable Factory overhead ated Depreciation Machinery and Accum Equipment Work n Process Factory overhead nished Goods Work in Accounts Receivable Sales Cost of Goods Sold nished Goods 2. Post the appropriate entries to Taccounts 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.

Answer 1

	Journal entry
Date	Accounting titles & explanations			Debit	Credit
a.	Raw materials inventory			3,360
	accounts payable				3,360
b.	Work in process			44300
	factory overhead			4380
	raw materials inventory				25360
	Wages payable				23,320
c)	Facotry overhead			5,310
	Accounts payable				5,310
d)	Factory overhead			1,650
	Accumulated depreciation				1,650
e)	Work in process inventory			8120
	factory overhead(232*35)				8,120
f)	Finsihed goods			29450
	Work in process				29,450
g)	Account receivable			31040
	sales				31,040
	Cost of goods sold			19320
	Finished goods inventory				19,320
	Work in process inventory				Finsihed goods
b	44,300	f	29,450		f.	29,450	g.	19,320
e	8120				bal	10130
bal	22970
Schedule of unfinihsed jobs
job	DM	DL	FOH	total
304	7,620	5,750	2415	15,785
306	3,530	2,780	875	7,185
balance				22,970
Schedule of copmpleted jobs
job	DM	DL	FOH	total
301	2,780	2,320	1540	6,640
302	3,390	3,130	1540	8,060
303	2,250	1,530	840	4,620
305	4,840	4,380	910	10,130
balance finished goods				29,450