Tybee Industries Inc. uses a job order cost system. The following data summarize

Question

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 a. Materials purchased on account, $29,800. b. Materials requisitioned and factory labor used: Materials Factory Labor Job 301 302 303 304 305 306 For general factory use1,080 $2,960 3,620 2,400 8,100 5,100 3,750 $2,775 3,750 1,875 6,860 5,250 3,340 4,100 c. Factory overhead costs incurred on account, $5,500. d. Depreciation of machinery and equipment, $1,980 e. The factory overhead rate is $54 per machine hour. Machine hours used:

Explanation / Answer

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JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Jan. 31 Materials 29800 29800 Accounts payable 29800 29800 (To record materials purchased on account) Jan. 31 Work in process 49780 49780 Factory overhead 5180 -5180 Materials 27010 -27010 Wages payable 27950 27950 (To record materials requisitioned and factory labor used) Jan. 31 Factory overhead 5500 -5500 Accounts payable 5500 5500 (To record factory overhead costs incurred on account) Jan. 31 Factory overhead 1980 -1980 Accumulated depreciation-machinery and equipment 1980 -1980 (To record depreciation on machinery and equipment) Jan. 31 Work in process (228 x $54) 12312 12312 Factory overhead 12312 12312 (To record factory overheads applied) Jan. 31 Finished goods 34804 34804 Work in process 34804 -34804 (To record jobs completed and transferred) Jan. 31 Accounts receivable 34450 34450 Sales 34450 34450 (To record sales) Jan. 31 Cost of goods sold 22294 -22294 Finished goods 22294 -22294 (To record the cost of goods sold)

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