FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Entries and Schedules for Unfinished Jobs and Completed Jobs

Tybee Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations:

  1. Materials purchased on account, $2,230.
  2. Materials requisitioned and factory labor used:

    Job Materials Factory Labor
    301 $2,520 $2,190
    302 3,070 2,960
    303 2,040 1,450
    304 6,900 5,430
    305 4,380 4,140
    306 3,200 2,630
    For general factory use 860 3,240
  3. Factory overhead costs incurred on account, $4,810.
  4. Depreciation of machinery and equipment, $1,550.
  5. The factory overhead rate is $45 per machine hour. Machine hours used:

    Job Machine Hours
    301 44
    302 19
    303 20
    304 83
    305 45
    306 27
    Total 238
  6. Jobs completed: 301, 302, 303, and 305.
  7. Jobs were shipped and customers were billed as follows: Job 301, $8,030; Job 302, $8,260; Job 303, $12,730.
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.
Tybee Industries Inc.
Schedule of Unfinished Jobs
Direct
Direct
Factory
obנ
Total
Materials
Labor
Overhead
Balance of Work in Process, January 30
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
Tybee Industries Inc.
Schedule of Completed Jobs
Direct
Direct
Factory
Job
Total
Materials
Labor
Overhead
%24
%24
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Transcribed Image Text: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. Tybee Industries Inc. Schedule of Unfinished Jobs Direct Direct Factory obנ Total Materials Labor Overhead Balance of Work in Process, January 30 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account. Tybee Industries Inc. Schedule of Completed Jobs Direct Direct Factory Job Total Materials Labor Overhead %24 %24
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
С.
Factory Overhead
Accounts Payable
d.
Factory Overhead
Accumulated Depreciation-Machinery and Equipment
е.
Work in Process
Factory Overhead
f.
Finished Goods
Work in Process
g.
Accounts Receivable
Sales
Cost of Goods Sold
Finished Goods
expand button
Transcribed Image Text: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 С. Factory Overhead Accounts Payable d. Factory Overhead Accumulated Depreciation-Machinery and Equipment е. Work in Process Factory Overhead f. Finished Goods Work in Process g. Accounts Receivable Sales Cost of Goods Sold Finished Goods
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