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

ID: 2464725 • 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 2014, the first month of operations a. Materials purchased on account, $147,000 b. Materials requisitioned and factory labor used Factory Labor Job No. 101 102 103 104 105 106 For general factory use Materials $19,320 23,100 13,440 38,200 18,050 18,000 9,000 $19,500 28,140 14,000 36,500 15,540 18,700 20,160 C. Factory overhead costs incurred on account, $6,000 d. Depreciation of machinery and equipment, $4,100 e. The factory overhead rate is $40 per machine hour. Machine hours used: Job 101 102 103 104 105 106 Total Machine Hours 154 160 126 238 160 174 1,012 f. Jobs completed: 101, 102, 103, and 105 g. Jobs were shipped and customers were billed as follows: Job 101, $62,900; Job 102, $80,700; Job 105, $45,500

Explanation / Answer

No.

Description

Debit

Credit

(a)

Raw materials inventory

$147,000

To accounts payable

$147,000

(b)

WIP inventory

262,490

Manufacturing overhead

29,160

To Raw material inventory

139,110

To Factory wages payable

152,540

c)    

Manufacturing overhead

$6,000

To Cash

$6,000

d)

Manufacturing overhead

$4,100

To Accumulated depreciation

$4,100

e)

WIP inventory

$40,480

To Manufacturing overhead

(1,012 *40)

$40,480

f)

Finished goods inventory

175,090

To WIP inventory

$175,090

g)

Account receivable

189,100

To Sales

189,100

Cost of goods sold

$142,610

To Finished goods inventory

$142,610

(2) WIP

302,970

Finished goods

175,090

Balance

127,880

Finished goods

WIP

175,090

COGS

142,610

Balance

32,480

(3)

job

Direct materials

Direct labor

Factory overhead

total

104

38,200

36,500

9,520

84,220

106

18,000

18,000

6,960

43,660

Balance in WIP

127,880

(4) Schedule of completed jobs

Job

Direct materials

Direct labor

Factory overhead

Total

103

13,440

14,000

5,040

32,480

No.

Description

Debit

Credit

(a)

Raw materials inventory

$147,000

To accounts payable

$147,000

(b)

WIP inventory

262,490

Manufacturing overhead

29,160

To Raw material inventory

139,110

To Factory wages payable

152,540

c)    

Manufacturing overhead

$6,000

To Cash

$6,000

d)

Manufacturing overhead

$4,100

To Accumulated depreciation

$4,100

e)

WIP inventory

$40,480

To Manufacturing overhead

(1,012 *40)

$40,480

f)

Finished goods inventory

175,090

To WIP inventory

$175,090

g)

Account receivable

189,100

To Sales

189,100

Cost of goods sold

$142,610

To Finished goods inventory

$142,610