PROBLEM IV INSTRUCTIONS 1. Journalize the entries to record the transactions ind

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PROBLEM IV
INSTRUCTIONS 1. Journalize the entries to record the transactions indentified above. 2. Determine the account balances for Work in Process and Finished Goods. 3. Prepare a schedule of unfinished jobs to support the balances in the work in process account 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods accounts.
Derby Music Company specializes in producing and packaging compact discs (CDs) for the music recording industry. Derby use a job order cost system. The following data summarize the operations related to production for March, the first month of operations: a. Materials purchased on account. $15,500. b. Materials requisitioned and labor used. ?Materials? Factory Labor Job 100? $2,650?? $1,770 Job 101? 1,240?? 650 Job 102? 980?? 420 Job 103? 3,420?? 1,900 Job 104? 1,000?? 500 Job 105? 2,100?`?? 1,760 For general factory use? 450?? 650 c. Factory overhead costs incurred on account. $2,700 d. Depreciation of machinery. $1,750 e. Factory overhead is applied at a rate of 70% of direct labor cost. f. Jobs completed: Nos. 100, 101, 102, 104 g. Jobs 100, 101, 102 were shipped and customers were billed for $8,100, $3,800 and $3,500 respectively.
PROBLEM IV
INSTRUCTIONS 1. Journalize the entries to record the transactions indentified above. 2. Determine the account balances for Work in Process and Finished Goods. 3. Prepare a schedule of unfinished jobs to support the balances in the work in process account 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods accounts.
Derby Music Company specializes in producing and packaging compact discs (CDs) for the music recording industry. Derby use a job order cost system. The following data summarize the operations related to production for March, the first month of operations: a. Materials purchased on account. $15,500. b. Materials requisitioned and labor used. ?Materials? Factory Labor Job 100? $2,650?? $1,770 Job 101? 1,240?? 650 Job 102? 980?? 420 Job 103? 3,420?? 1,900 Job 104? 1,000?? 500 Job 105? 2,100?`?? 1,760 For general factory use? 450?? 650 c. Factory overhead costs incurred on account. $2,700 d. Depreciation of machinery. $1,750 e. Factory overhead is applied at a rate of 70% of direct labor cost. f. Jobs completed: Nos. 100, 101, 102, 104 g. Jobs 100, 101, 102 were shipped and customers were billed for $8,100, $3,800 and $3,500 respectively.
PROBLEM IV
INSTRUCTIONS 1. Journalize the entries to record the transactions indentified above. 2. Determine the account balances for Work in Process and Finished Goods. 3. Prepare a schedule of unfinished jobs to support the balances in the work in process account 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods accounts. INSTRUCTIONS 1. Journalize the entries to record the transactions indentified above. 2. Determine the account balances for Work in Process and Finished Goods. 3. Prepare a schedule of unfinished jobs to support the balances in the work in process account 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods accounts. INSTRUCTIONS 1. Journalize the entries to record the transactions indentified above. 2. Determine the account balances for Work in Process and Finished Goods. 3. Prepare a schedule of unfinished jobs to support the balances in the work in process account 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods accounts.
Derby Music Company specializes in producing and packaging compact discs (CDs) for the music recording industry. Derby use a job order cost system. The following data summarize the operations related to production for March, the first month of operations: a. Materials purchased on account. $15,500. b. Materials requisitioned and labor used. ?Materials? Factory Labor Job 100? $2,650?? $1,770 Job 101? 1,240?? 650 Job 102? 980?? 420 Job 103? 3,420?? 1,900 Job 104? 1,000?? 500 Job 105? 2,100?`?? 1,760 For general factory use? 450?? 650 c. Factory overhead costs incurred on account. $2,700 d. Depreciation of machinery. $1,750 e. Factory overhead is applied at a rate of 70% of direct labor cost. f. Jobs completed: Nos. 100, 101, 102, 104 g. Jobs 100, 101, 102 were shipped and customers were billed for $8,100, $3,800 and $3,500 respectively.

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Date Account Description Debit Credit a Material Inventory $        15,500 Accounts payable $        15,500 (To record Purchase of Inventory) b1 WIP-Job 100 $          2,650 WIP-Job 101 $          1,240 WIP-Job 102 $              980 WIP-Job 103 $          3,420 WIP-Job 104 $          1,000 WIP-Job 105 $          2,100 Material Inventory $        11,390 (To record issue of material to various jobs) b2 WIP-Job 100 $          1,770 WIP-Job 101 $              650 WIP-Job 102 $              420 WIP-Job 103 $          1,900 WIP-Job 104 $              500 WIP-Job 105 $          1,760 Wage expenses $          7,000 (To record use of labour to various jobs) b3 Factory Overhead $          1,100 Material Inventory $              450 Wage expenses $              650 (To record Factory Expenses) c Factory Overhead $          2,700 Accounts payable $          2,700 (To record Factory Expenses) d Factory Overhead $          1,750 Depreciation on Machinery $          1,750 ( To record Depreciation to Factory Overhead) e WIP-Job 100 (1770*70%) $          1,239 WIP-Job 101 (650*70%) $              455 WIP-Job 102 (420*70%) $              294 WIP-Job 103 (1900*70%) $          1,330 WIP-Job 104 (500 *70%) $              350 WIP-Job 105 (1760*70%) $          1,232 Factory Overhead $          4,900 (To apply Factory overhead to Jobs) f Finished goods ( Job 100) $          5,659 Finished goods ( Job 101) $          2,345 Finished goods ( Job 102) $          1,694 Finished goods ( Job 104) $          1,850 WIP-Job 100 $          5,659 WIP-Job 101 $          2,345 WIP-Job 102 $          1,694 WIP-Job 104 $          1,850 (to record transfer of cost from WIP to Finished goods) g1 Accounts Receivable $        15,400 Sales Revenue (8100+3800+3500) $        15,400 (To record Sales) g2 Cost of Goods Sold $          9,698 Finished goods ( Job 100) $          5,659 Finished goods ( Job 101) $          2,345 Finished goods ( Job 102) $          1,694

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