I need help solving the problem posted below: Entries and Schedules for Unfinished Jobs and...
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Accounting
I need help solving the problem posted below:
Entries and Schedules for Unfinished Jobs and Completed Jobs
Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations:
Materials purchased on account, $2,230.
Materials requisitioned and factory labor used:
Job No.
Materials
Factory Labor
101
$2,300
$1,960
102
2,810
2,650
103
1,860
1,290
104
6,300
4,860
105
4,000
3,700
106
2,920
2,350
For general factory use
780
2,900
Factory overhead costs incurred on account, $4,390.
Depreciation of machinery and equipment, $1,390.
The factory overhead rate is $65 per machine hour. Machine hours used:
Job No.
Machine Hours
101
26
102
33
103
24
104
73
105
33
106
16
Total
205
Jobs completed: 101, 102, 103, and 105.
Jobs were shipped and customers were billed as follows: Job 101, $7,140; Job 102, $9,130; Job 105, $13,660.
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
Materials
Wages Payable
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. Sale
Accounts Receivable
Sales
g. Cost
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.
Hildreth Company Schedule of Unfinished Jobs
Job
Direct Materials
Direct Labor
Factory Overhead
Total
No. 104
$
$
$
$
No. 106
Balance of Work in Process, April 30
$
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
Hildreth Company Schedule of Completed Jobs
Job
Direct Materials
Direct Labor
Factory Overhead
Total
Finished Goods, April 30 (Job 103)
$
$
$
$
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