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 3,030Explanation / 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
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