Question

11. 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, $29,050.
	b. Materials requisitioned and factory labor used:

Job	Materials	Factory Labor
301	$2,870	$2,870
302	3,690	3,770
303	2,300	1,920
304	8,510	7,050
305	5,000	5,250
306	3,770	3,240
For general factory use	1,030	4,110

	c. Factory overhead costs incurred on account, $5,400.
	d. Depreciation of machinery and equipment, $2,000.
	e. The factory overhead rate is $52 per machine hour. Machine hours used:

Job	Machine Hours
301	27
302	35
303	29
304	70
305	39
306	25
Total	225 f. Jobs completed: 301, 302, 303 and 305. g. Jobs were shipped and customers were billed as follows: Job 301, $8,310; Job 302, $11,120; Job 303, $14,320. Required: 1. Journalize the entries to record the summarized operations. Record each item (items a-f) as an individual entry on January 31. Record item g as 2 entries. Refer to the Chart of Accounts for exact wording of account titles. 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. 3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.* 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.* *Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries.

CHART OF ACCOUNTS

Tybee Industries Inc.

General Ledger

ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 132 Work in Process 133 Factory Overhead 134 Finished Goods 141 Supplies 142 Prepaid Insurance 143 Prepaid Expenses 181 Land 191 Machinery and Equipment 192 Accumulated Depreciation-Machinery and Equipment LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 241 Lease Payable 251 Wages Payable 252 Consultant Fees Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary

Answer 1

Part A. Journal entry Transaction General Journal Raw materials inventory Accounts payable Debit Credit 29,050 29,050 Work in process inventory Factory overhead Raw materials inventory 50240 51401 55380 Factory overhead Cash 5,400 | 5,4001 2,000 Factory overhead accumulated depreciation 2,000 11,700 Work in process inventory Factory overhead (225*52) 11,700 Finished goods inventory 34430 34,430 Work in process inventory |(5740+7460+4220+10250+ (27+35+29+39) 52) Accounts receivable Sales 8310+11120+14320 33,750 33,750 22152 Cost of goods sold Finished goods inventory (5740+7460+4220+27+35+29) *52)

Job 301 302 303 304 305 306 total For general factory use Materials 2,870 3,690 2,300 8,510 5,000 3,770 26,140 1,030 Factory Labor total 2,870 5,740 3,770 7,460 1,920 4,220 7,050 | 15,560 5,250 10,250 3,240 7,010 24,100 50,240 4,110 5,140 Part B. T accounts work in in Process inventory 34,430F beg bal Гь e 50,240 11,700 end bal 27,510 Finished Goods inventory beg bal 22,152 g 34,430 end bal 12,278

304 306 total 8,5103,770 | 12,280 7,050 3,240 10,290 C.schedule of unfinished job Direct material Direct labor factory overhead Machine hours x rater per hour factory overhead total cost 70 2595 52 52 52 3,640 1,300 4,940 19,2008,310 27,510 305 5,000 5,250 D.schedule of finished job on hand Direct material Direct labor factory overhead Machine hours x rater per hour factory overhead total cost 39 52 2,028 12,278