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Entries and Schedules for Unfinished Jobs and Completed Jobs Hildreth Company us

ID: 2339722 • Letter: E

Question

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:

a) Materials purchased on account, $2,670.

b) Materials requisitioned and factory labor used:

c) Factory overhead costs incurred on account, $3,510.

d) Depreciation of machinery and equipment, $1,460.

e) The factory overhead rate is $40 per machine hour. Machine hours used:

Jobs completed: 101, 102, 103, and 105.

Jobs were shipped and customers were billed as follows: Job 101, $5,720; Job 102, $7,160; Job 105, $13,220.

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.

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.

Job No. Materials Factory Labor 101 $1,840 $2,050 102 2,240 2,770 103 1,490 1,350 104 5,040 5,080 105 3,200 3,870 106 2,340 2,460 For general factory use 630 3,030

Explanation / Answer

Solution:

Primary Working

Job 101

Job 102

Job 103

Job 104

Job 105

Job 106

Total

Direct Materials used

$1,840

$2,240

$1,490

$5,040

$3,200

$2,340

$16,150

Direct Labor Costs

$2,050

$2,770

$1,350

$5,080

$3,870

$2,460

$17,580

Applied Factory Overhead

(Refer Note 1)

$880

$960

$1,720

$2,800

$1,400

$840

$8,600

Total Manufacturing Costs

$4,770

$5,970

$4,560

$12,920

$8,470

$5,640

$42,330

Note 1

Job 101

Job 102

Job 103

Job 104

Job 105

Job 106

Total

Machine Hours Used

22

24

43

70

35

21

215

Overhead Rate per Machine Hour

$40

$40

$40

$40

$40

$40

Applied Factory Overhead

$880

$960

$1,720

$2,800

$1,400

$840

$8,600

Part 1 – Journal Entry

Transaction

General Journal

Debit

Credit

a.

Materials

$2,670

Accounts Payable

$2,670

b.

Work In Process (16150 + 17580)

$33,730

Factory Overhead (630 + 3030)

$3,660

Materials

$16,150

Wages Payable (17580 + 3030)

$20,610

c.

Factory Overhead

$3,510

Accounts Payable

$3,510

d.

Factory Overhead

$1,460

Accumulated Depreciation Machinery and Equipment

$1,460

e.

Work in Process (Refer Note 1)

$8,600

Factory Overhead

$8,600

f.

Finished Goods (Job1 $4770 + Job2 $5970 + Job3 $4560 + Job5 $8470)

$23,770

Work IN Process

$23,770

g. Sale

Accounts Receivable (5720+7160+13220)

$26,100

Sales

$26,100

g. Cost

Cost of Goods Sold (4770 + 5970 + 8470)

$19,210

Finished Goods

$19,210

Part 2 – T-Accounts

Work In Process

b.

$33,730

f.

$23,770

e.

$8,600

Bal.

$18,560

Finished Goods

f.

$23,770

g.

$19,210

Bal.

$4,560

Part 3 – Schedule of Unfinished Jobs

Schedule of Unfinished Jobs

Job

Direct Materials

Direct Labor

Factory Overhead

Total

No. 104

$5,040

$5,080

$2,800

$12,920

No. 106

$2,340

$2,460

$840

$5,640

Balance of Work In Process, April 30

$18,560

Part 4 – Schedule of Completed Jobs

Schedule of Completed Jobs

Job

Direct Materials

Direct Labor

Factory Overhead

Total

Finished Goods, April 30 (Job 103)

$1,490

$1,350

$1,720

$4,560

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Primary Working

Job 101

Job 102

Job 103

Job 104

Job 105

Job 106

Total

Direct Materials used

$1,840

$2,240

$1,490

$5,040

$3,200

$2,340

$16,150

Direct Labor Costs

$2,050

$2,770

$1,350

$5,080

$3,870

$2,460

$17,580

Applied Factory Overhead

(Refer Note 1)

$880

$960

$1,720

$2,800

$1,400

$840

$8,600

Total Manufacturing Costs

$4,770

$5,970

$4,560

$12,920

$8,470

$5,640

$42,330

Note 1

Job 101

Job 102

Job 103

Job 104

Job 105

Job 106

Total

Machine Hours Used

22

24

43

70

35

21

215

Overhead Rate per Machine Hour

$40

$40

$40

$40

$40

$40

Applied Factory Overhead

$880

$960

$1,720

$2,800

$1,400

$840

$8,600