Staircase Equipment Company uses a job order cost system. The following data sum
ID: 2488354 • Letter: S
Question
Staircase Equipment Company uses a job order cost system. The following data summarize the operations related to production for April 2014, the first month of operations: Materials purchased on account, $3,320. Materials requisitioned and factory labor used: Job Materials Factory Labor No. 301 $2,350 $1,800 No. 302 2,870 2,430 No. 303 1,900 1,190 No. 304 6,440 4,460 No. 305 4,090 3,400 No. 306 2,980 2,160 For general factory use 800 2,660 Factory overhead costs incurred on account, $4,490. Depreciation of machinery and equipment, $1,280. The factory overhead rate is $45 per machine hour. Machine hours used: Job Machine Hours No. 301 41 No. 302 17 No. 303 44 No. 304 69 No. 305 21 No. 306 33 Total 225 Jobs completed: 301, 302, 303, and 305. Jobs were shipped and customers were billed as follows: Job 301, $7,190; Job 302, $7,280; Job 303, $14,700. 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 or enter "0". Entries Description Debit Credit a. b. c. d. e. f. g. 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. Work in Process Bal. Finished Goods Bal. 3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. Staircase Equipment Company Schedule of Unfinished Jobs Job Direct Materials Direct Labor Factory Overhead Total $ $ $ $ Balance of Work in Process, April 30 $ 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account. Staircase Equipment Company Schedule of Completed Jobs Job Direct Materials Direct Labor Factory Overhead Total $ $ $ $ Check My Work (10 remaining) Icon Key Question 1 of 1Problem 17-2 (Algorithmic) Email InstructorSaveExitSubmit Assignment for Grading
Explanation / Answer
Solution:
Answer:1
Entries
Description
Debit
Credit
a.
Material Dr.
3320
To Accounts payable
3320
b.
Work in process Dr. (sum of material cost and factory labor of all jobs)
36070
Factory overhead Dr. (general factory use for material and labor)
3460
To Materials (Sum of material cost of all jobs + general factory use)
21430
To wages payable (Sum of factory labor of all jobs + general factory use)
18100
c.
Factory overhead Dr.
4490
To accounts payable
4490
d.
Factory overhead Dr.
1280
To accumulated depreciation- Machinery and Equipment
1280
e.
Work in process Dr.
10125
To Factory overhead (225 machine hours * $45 per machine hour)
10125
f.
Finished goods Dr.(sum of material, labor and factory overhead assigned to jobs – 301, 302, 303, 305)
25565
To work in process
25565
G - Sale
Accounts receivable Dr.(sum of billing of jobs- 301, 302, 303)
29170
To sales
29170
G - Cost
COGS Dr. ( sum of material, labor and factory overhead assigned to jobs – 301, 302, 303)
17130
To Finished goods
17130
Answer:2
Work in process
(b)
36070
(f)
25565
(e)
10125
Balance
20630
Finished goods
(f)
25565
(g)
17130
Balance
8435
Answer:3
Schedule of unfinished Jobs
Job
Direct materials
Direct labor
Factory overhead
Total
304
6440
4460
3105
14005
306
2980
2160
1485
6625
Balance of work in process, April 30
20630
Answer:4
Schedule of completed Jobs
Job
Direct materials
Direct labor
Factory overhead
Total
Finished goods, April30 (Job 305)
4090
3400
945
8435
Job Material Labor Factory overhead = No. of machine hours * $45 per machine hour 301 2350 1800 1845 302 2870 2430 765 303 1900 1190 1980 304 6440 4460 3105 305 4090 3400 945 306 2980 2160 1485 General factory use 800 2660 Total 21430 18100 10125Related Questions
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