Question

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: a. Materials purchased on account, $29,800. b. Materials requisitioned and factory labor used: Job Materials Factory Labor $2,775 301 $ 2,960 302 3,620 3,750 303 1,875 2,400 8,100 304 6,860 305 5,100 5,250 306 3,750 3,340 For general factory use 1,080 4,100 c. Factory overhead costs incurred on account, $5,500.

Answer 1

Entries Date Description Credit Debit 29,800 a. Mar 31. Materials Accounts Payable 29,800 b.* 49,780 5,180 Mar 31. Work in Process (25930+23850) Factory Overhead =1080+4100 Materials (25930+1080) Wages Payable (23850+4100) 27,010 27,950 C. Mar 31. 5,500 Factory Overhead Accounts Payable 5,500 d. 1,980 Mar 31. Factory Overhead Accumulated Depreciation-Machinery&Equipment 1,980 ** e. Mar 31. 12,312 Work in Process Factory Overhead 12,312 f.* 34,804 Mar 31. Finished Goods Work in Process (7085+9314+5895+12510) 34,804 Mar 31. 34,450 Accounts Receivable Sales (8250+11200+15000) 34,450 22,294 Cost of Goods Sold Finished Goods (7085+9314+5895) 22,294

b 34,804 Work in process 49,780 f 12,312 27,288 Bal Finished goods 34,804 g f 22,294 Bal 12,510 3.Schedule of unfinished Jobs Job Direct Materials Direct Labor Factory Overhead** Total 304 8,100 6,860 3,888 18,848 306 3,750 3,340 1,350 8,440 Balance of Work in Process, April 30 11,850 10,200 5,238 27,288 Job 4.Schedule of completed Jobs Direct Materials Direct Labor Factory Overhead** 305 5,100 5,250 2,160 Total 12,510 **working : Jobs Total 301 302 303 306 Material labor 2,960 2,775 3,620 3,750 2,400 1,875 304 8,100 6,860 305 5,100 5,250 3,750 25,930 3,340 23,850 25 36 30 72 40 25 228 factory overhead Machine hours x overhead rate Total factory overhead 54 54 54 54 54 54 54 1,350 1,944 1,620 3,888 2,160 1,350 12,312 Total 7,085 9,314 5,895 18,848 12,510 8,440 62,092