Entries and Schedules for Unfinished Jobs and Completed Jobs
Sinatra Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January 2014, the first month of operations:
Materials purchased on account, $39,300.
Materials requisitioned and factory labor used:
Factory overhead costs incurred on account, $7,500.
Depreciation of machinery and equipment, $2,640.
The factory overhead rate is $60 per machine hour. Machine hours used:
Jobs completed: 201, 202, 203, and 205.
Jobs were shipped and customers were billed as follows: Job 201, $11,000; Job 202, $14,820; Job 203, $19,920.
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".
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.
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.
Factory overhead costs incurred on account, $4,350.
Depreciation of machinery and equipment, $2,200.
The factory overhead rate is $60 per machine hour. Machine hoursused:
Job
MachineHours
No. 301
36
No. 302
45
No. 303
44
No. 304
69
No. 305
16
No. 306
33
Total
243
Jobs completed: 301, 302, 303, and 305.
Jobs were shipped and customers were billed as follows: Job 301,$9,050; Job 302, $11,600; Job 303, $18,970.
Post the appropriate entries to T accounts for Work in Processand Finished Goods, using the identifying letters as transactioncodes. Insert memo account balances as of the end of the month.
