Entries and Schedules for Unfinished Jobs and Completed Jobs Hildreth Company us
ID: 2529334 • 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: Materials purchased on account, $2,920. Materials requisitioned and factory labor used: Job No. Materials Factory Labor 101 $1,970 $2,970 102 2,400 4,010 103 1,600 1,960 104 5,400 7,370 105 3,430 5,610 106 2,500 3,560 For general factory use 670 4,400 Factory overhead costs incurred on account, $3,760. Depreciation of machinery and equipment, $2,110. The factory overhead rate is $35 per machine hour. Machine hours used: Job No. Machine Hours 101 17 102 39 103 36 104 81 105 29 106 23 Total 225 Jobs completed: 101, 102, 103, and 105. Jobs were shipped and customers were billed as follows: Job 101, $6,640; Job 102, $9,330; Job 105, $13,980. 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. Entries Description Debit Credit a. Materials Accounts Payable b. Work in Process Factory Overhead Materials Wages Payable c. Factory Overhead Accounts Payable d. Factory Overhead Accumulated Depreciation-Machinery and Equipment e. Work in Process Factory Overhead f. Finished Goods Work in Process g. Sale Accounts Receivable Sales g. Cost Sales Cost of Goods Sold 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. Hildreth 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. Hildreth Company Schedule of Completed Jobs Job Direct Materials Direct Labor Factory Overhead Total $ $ $ $
Explanation / Answer
(ALL VALUES IN $)
1.
To Accounts Payable Cr. 2920
To Materials Cr. 17300
Work in process (Note no. 2) Dr. 25480
To Wages Payable Cr. 25480
Factory Overhead Dr. 5070
To Materials Cr. 670
To Wages Payable Cr. 4400
To Accounts Payable Cr. 3760
To Accumulated Depreciation Cr. 2110
To Factory OH Cr. 7875
To Work in process Cr. 28185
To Sales Cr. 29950
Cost of Goods Sold(Note no. 6) Dr. 23365
To Finished Goods Cr. 23365
2.
Particulars
Amount
Work in process(17300+25480+7875-28185)
22470
Finished Goods(28185-23365)
4820
3.
Schedule for Unfinished Jobs
Job No.
Direct material
Direct labour
Factory OH
Total
104
5400
7370
2835
15605
106
2500
3560
805
6865
Balance of Work in Process, March 31
22470
4.
Schedule for Completed Jobs
Job No. 103
Amount
Direct Material
1600
Direct Labour
1960
Factory OH
1260
Balance of Finished Goods, March 31
4820
Working Notes :
1.Work in process = 1970+2400+1600+5400+3430+2500
=17300
2.Work in process = 2970+4010+1960+7370+5610+3560
=25480
3.
Job no.
Rate per hour
Hours Worked
Amount
101
35
17
595
102
35
39
1365
103
35
36
1260
104
35
81
2835
105
35
29
1015
106
35
23
805
7875
4.
Job no.
Material
Labour
Factory OH
Total
101
1970
2970
595
5535
102
2400
4010
1365
7775
103
1600
1960
1260
4820
105
3430
5610
1015
10055
28185
5.Sales = 6640+9330+13980
= 29950
6.Costs of Goods Sold = 5535+7775+10055
Particulars
Amount
Work in process(17300+25480+7875-28185)
22470
Finished Goods(28185-23365)
4820
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