Entries and Schedules for Unfinished Jobs and Completed Jobs Staircase Equipment

Question

Entries and Schedules for Unfinished Jobs and Completed Jobs

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, $2,080.

Materials requisitioned and factory labor used:

Factory overhead costs incurred on account, $4,160.

Depreciation of machinery and equipment, $2,000.

The factory overhead rate is $70 per machine hour. Machine hours used:

Jobs completed: 301, 302, 303, and 305.

Jobs were shipped and customers were billed as follows: Job 301, $9,020; Job 302, $11,540; Job 303, $14,180.

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".

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 Materials Factory Labor No. 301 $2,180 $2,820 No. 302 2,660 3,810 No. 303 1,770 1,860 No. 304 5,970 6,990 No. 305 3,790 5,330 No. 306 2,770 3,380 For general factory use 740 4,170 stsystem. The following data summarize the operations related to production for April 2014, the first month of operations staircase Equipment a Materials purchased on account, $2.080. b Materials requisitioned and factory labor used Materials Factory Labor Job No. 301 No. 302 No. 303 No. 304 2.180 2,660 1.770 5,970 3,790 2.770 740 $2,820 3,810 1,860 6,990 5,330 3,380 4,170 No. 305 No. 306 For general factory use c. Factory overhead costs incurred on account, $4,160. d. Depreciation of machinery and equipment, $2.000. e The factory overhead rate is $70 per machine hour. Machine hours usedi Job Machine Hours No.301 No. 302 No. 303 No. 304 No. 205 No. 306 36 45 18 68 30 45 . Jobs completed: 301. 302. 303, and 305. Jebs were shipped and customers were blled as folloa)ob 301. S9.020, Job 302. $11.540, Job 202. S 14.180 Required: 1. Jourealize the entries to record the summarized coerations. For a compound transaction, if an amount box dees not require an entry leave it blank or enter '0 bit Credie Description

Explanation / Answer

Entries               Description                                    Debit Credit a. Raw materials inventory 2,080 Accounts payable 2,080 b. work in process inventory(19,140+24,190) 43330 Factory overhead 4,910 Raw materials inventory 19,880 Factory payroll 28360 c. Factory overhead 4,160 accounts payable 4,160 d. Work in process inventory 15,815 Factory overhead 15,815 e. finished goods 0 work in process inventory 32,125 (7,520+8,495+4,890+11,220) f. Accounts receivable 34740 sales 34,740 Cost of goods sold 20905 Finished goods inventory 20,905 2) T- Accounts WIP b. 43,330 e. 32,125 d. 15,815 end bal 27,020 Finished goods inventory e. 32,125 f. 20,905 End bal 11,220 3) Schedule of unfinished jobs jobs DM DL OH applied total 304 5,970 6,990 4760 17,720 306 2,770 3,380 3150 9,300 total 8,740 10,370 7910 27,020 4) Schedule of finished jobs jobs DM DL OH applied total 305 3,790 5,330 2100 11,220 Direct direct overhead total job materials labor applied 301 2,180 2,820 2520 7,520 302 2,660 3,810 2025 8,495 303 1,770 1,860 1260 4,890 304 5,970 6,990 4760 17,720 305 3,790 5,330 2100 11,220 306 2,770 3,380 3150 9,300 total 19,140 24,190 15815 59,145

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