Hildreth Company uses a job order cost system. The following data summarize the

Question

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, $1,920.

Materials requisitioned and factory labor used:

Factory overhead costs incurred on account, $5,350.

Depreciation of machinery and equipment, $1,240.

The factory overhead rate is $65 per machine hour. Machine hours used:

Jobs completed: 101, 102, 103, and 105.

Jobs were shipped and customers were billed as follows: Job 101, $6,860; Job 102, $9,200; Job 105, $12,770.

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 $2,800 $1,750 102 3,420 2,360 103 2,270 1,160 104 7,670 4,340 105 4,870 3,310 106 3,560 2,100 For general factory use 950 2,590

Explanation / Answer

a Materials 1920       Accounts Payable 1920 b Work in Process 39610 Factory Overhead 3540      Materials 25540 =(2800+3420+2270+7670+4870+3560+950)      Wages Payable 17610 =(1750+2360+1160+4340+3310+2100+2590) c Factory Overhead 5350       Accounts Payable 5350 d Factory Overhead 1240       Accumulated Depreciation-Machinery and Equipment 1240 e Work in Process 13845 =213*65        Factory Overhead 13845 f Finished Goods 27595 =(2800+3420+2270+4870)+(1750+2360+1160+3310)+(18+29+15+25)*65        Work in Process 27595 g Accounts Receivable 28830 =6860+9200+12770      Sales 28830 Cost of Goods Sold 23190 =(2800+3420+4870)+(1750+2360+3310)+(18+29+25)*65      Finished Goods 23190 2 Work in Process b 39610 f 27595 e 13845 Bal. 25860 Finished Goods f 27595 g 23190 Bal. 4405 3 Schedule of Unfinished Jobs Job Direct Materials Direct Labor Factory Overhead Total 104 7670 4340 5460 17470 106 3560 2100 2730 8390 Balance of Work in Process, April 30 25860 4 Schedule of Completed Jobs Job Direct Materials Direct Labor Factory Overhead Total Finished Goods, June 30 (Job 105) 4870 3310 1625 9805

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