Entries and Schedules for Unfinished Jobs and Completed Jobs Hildreth Company us
ID: 2547122 • 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, $3,010.
Materials requisitioned and factory labor used:
Factory overhead costs incurred on account, $6,110.
Depreciation of machinery and equipment, $1,270.
The factory overhead rate is $45 per machine hour. Machine hours used:
Jobs completed: 101, 102, 103, and 105.
Jobs were shipped and customers were billed as follows: Job 101, $7,550; Job 102, $9,580; Job 105, $15,630.
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.
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.
3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
Job No. Materials Factory Labor 101 $3,200 $1,790 102 3,900 2,420 103 2,590 1,180 104 8,770 4,440 105 5,570 3,380 106 4,060 2,150 For general factory use 1,090 2,650Explanation / Answer
Solution:
Primary Working:
Job No.
Direct Material
Factory Labor
Factory Overhead (Machine Hour x Overhead Rate)
Total Manufacturing Cost
Status
101
$3,200
$1,790
$1,305
(29*45)
$6,295
Completed
102
$3,900
$2,420
$1,665
(37*45)
$7,985
Completed
103
$2,590
$1,180
$1,620
(36*45)
$5,390
Completed
104
$8,770
$4,440
$3,285
(73*45)
$16,495
Ending Work In Process
105
$5,570
$3,380
$1,530
(34*45)
$10,480
Completed
106
$4,060
$2,150
$900
(20*45)
$7,110
Ending Work In Process
$28,090
$15,360
$10,305
$53,755
Cost of Jobs Completed = $6295 + 7985 + 5390 + 10480 = $30,150
Part 1 – Journal Entries
Entries
General Journal
Debit
Credit
a.
Raw materials inventory
$3,010
Accounts Payable
$3,010
b.
Work In Process Inventory (direct material)
$28,090
Factory Overhead (general factory use)
$1,090
Raw materials inventory
$29,180
Work In Process Inventory (direct labor)
$15,360
Factory Overhead (general factory use)
$2,650
Wages Payable
$18,010
c.
Factory Overhead
$6,110
Accounts Payable
$6,110
d.
Factory Overhead
$1,270
Accumulated Depreciation
$1,270
e.
Work In Process Inventory
$10,305
Factory Overhead (Allied) refer working
$10,305
f.
Finished Goods Inventory (Cost of Jobs completed-- Refer Primary Working)
$30,150
Work In Process Inventory
$30,150
g. sale
Accounts Receivable
$32,760
Sales Revenue (7550 + 9580 + 15630)
$32,760
g. cost
Cost of Goods Sold (Job 101 6295 + Job 102 $7,985 + Job 105 $10,480)
$24,760
Finished Goods Inventory
$24,760
Part 2 – Posting to T-Accounts of Work In Process and Finished Goods
Work In Process
Beg. Bal
$0
Direct materials
$28,090
Finished Goods (completed jobs)
$30,150
Direct labor
$15,360
Applied Manufacturing OH
$10,305
Ending Bal.
$23,605
Finished Goods
beg. Bal
$0
Cost of Goods sold
24760
Work In Process
$30,150
Ending Bal.
$5,390
Part 3 – Schedule of Unfinished jobs
Job No.
Direct Material
Factory Labor
Factory Overhead (Machine Hour x Overhead Rate)
Total
104
$8,770
$4,440
$3,285
$16,495
106
$4,060
$2,150
$900
$7,110
Balance of Work in Process, April 30
$23,605
Part 4 -- Schedule of completed jobs on hand to support the balance in the finished goods account.
Job No.
Direct Material
Factory Labor
Factory Overhead (Machine Hour x Overhead Rate)
Total
103
$2,590
$1,180
$1,620
$5,390
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Job No.
Direct Material
Factory Labor
Factory Overhead (Machine Hour x Overhead Rate)
Total Manufacturing Cost
Status
101
$3,200
$1,790
$1,305
(29*45)
$6,295
Completed
102
$3,900
$2,420
$1,665
(37*45)
$7,985
Completed
103
$2,590
$1,180
$1,620
(36*45)
$5,390
Completed
104
$8,770
$4,440
$3,285
(73*45)
$16,495
Ending Work In Process
105
$5,570
$3,380
$1,530
(34*45)
$10,480
Completed
106
$4,060
$2,150
$900
(20*45)
$7,110
Ending Work In Process
$28,090
$15,360
$10,305
$53,755
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