Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $7,600 of indirect materials and $12,100 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form:
Job 301 Direct materials $10,600 Direct labor 8,300 Factory overhead 6,557 Total $25,457
Job 302 Direct materials $21,900 Direct labor 15,000 Factory overhead 11,850 Total $48,750
Job 303 Direct materials $23,200 Direct labor 19,000 Factory overhead â
Job 304 Direct materials $15,500 Direct labor 11,100 Factory overhead â
Required:
Journalize the Jan. 31 summary entries to record each of the following operations for January (one entry for each operation). Refer to the Chart of Accounts for exact wording of account titles. A. Direct and indirect materials used. B. Direct and indirect labor used. C. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost). D. Completion of Jobs 301 and 302.
Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $7,600 of indirect materials and $12,100 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form:
| Job 301 | |
| Direct materials | $10,600 |
| Direct labor | 8,300 |
| Factory overhead | 6,557 |
| Total | $25,457 |
| Job 302 | |
| Direct materials | $21,900 |
| Direct labor | 15,000 |
| Factory overhead | 11,850 |
| Total | $48,750 |
| Job 303 | |
| Direct materials | $23,200 |
| Direct labor | 19,000 |
| Factory overhead | â |
| Job 304 | |
| Direct materials | $15,500 |
| Direct labor | 11,100 |
| Factory overhead | â |
Required:
Journalize the Jan. 31 summary entries to record each of the following operations for January (one entry for each operation). Refer to the Chart of Accounts for exact wording of account titles.
|
Related questions
| Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $7,900 of indirect materials and $13,200 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form: Job 301 | |||||||
| direct material | 10,900 | ||||||
| Direct Labor | 8,900 | ||||||
| Factory Overhead | 5785 | ||||||
| Total | 25,585 | ||||||
| Job 302 | |||||||
| Direct Material | 18,300 | ||||||
| Direct Labor | 17,700 | ||||||
| Factory Overhead | 11,505 | ||||||
| Total | 47505 | ||||||
| Job 303 | |||||||
| Direct Materials | 26,000 | ||||||
| Direct Labor | 16,000 | ||||||
| Factory Overhead | - | ||||||
| Job 304 | |||||||
|
Required:
Journalize the Jan. 31 summary entries to record each of the following operations for January (one entry for each operation). Refer to the Chart of Accounts for exact wording of account titles.
|
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, $1,870.
Materials requisitioned and factory labor used:
| Job | Materials | Factory Labor | ||
| 301 | $2,300 | $2,400 | ||
| 302 | 2,810 | 3,240 | ||
| 303 | 1,860 | 1,580 | ||
| 304 | 6,300 | 5,950 | ||
| 305 | 4,000 | 4,540 | ||
| 306 | 2,920 | 2,880 | ||
| For general factory use | 780 | 3,550 | ||
Factory overhead costs incurred on account, $4,390.
Depreciation of machinery and equipment, $1,700.
The factory overhead rate is $40 per machine hour. Machine hours used:
| Job | Machine Hours | ||
| 301 | 36 | ||
| 302 | 15 | ||
| 303 | 42 | ||
| 304 | 74 | ||
| 305 | 38 | ||
| 306 | 41 | ||
| Total | 246 | ||
Jobs completed: 301, 302, 303, and 305.
Jobs were shipped and customers were billed as follows: Job 301, $7,370; Job 302, $7,980; Job 303, $14,850.
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. | Materials | ||
| Accounts Payable | |||
| b. | Work in Process | ||
| Factory Overhead | |||
| c. | Factory Overhead | ||
| Accounts Payable | |||
| d. | Factory Overhead | ||
| Accumulated Depreciation-Machinery and Equipment | |||
| e. | Work in Process | ||
| Factory Overhead | |||
| f. | Finished Goods | ||
| Work in Process | |||
| g. | Accounts Receivable | ||
| Sales | |||
| Cost of Goods Sold | |||
| Finished Goods |
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 | |||
|---|---|---|---|
| (b) | (f) | ||
| (e) | |||
| Bal. | |||
| Finished Goods | |||
|---|---|---|---|
| (f) | (g) | ||
| 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 | ||||
| No. 304 | $ | $ | $ | $ | ||||
| No. 306 | ||||||||
| 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 | ||||
| Finished Goods, January 30 (Job 305) | $ | $ | ||||||
