Entries and Schedules for Unfinished Jobs and Completed Jobs Staircase Equipment
ID: 2426971 • Letter: E
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, $3,090.
Materials requisitioned and factory labor used:
Factory overhead costs incurred on account, $5,460.
Depreciation of machinery and equipment, $1,220.
The factory overhead rate is $35 per machine hour. Machine hours used:
Jobs completed: 301, 302, 303, and 305.
Jobs were shipped and customers were billed as follows: Job 301, $6,130; Job 302, $8,360; Job 303, $13,690.
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 $2,860 $1,720 No. 302 3,490 2,320 No. 303 2,320 1,140 No. 304 7,840 4,270 No. 305 4,980 3,250 No. 306 3,630 2,060 For general factory use 970 2,550Explanation / Answer
Job Materials Factory Labor No. 301 $2,860 $1,720 No. 302 3,490 2,320 No. 303 2,320 1,140 No. 304 7,840 4,270 No. 305 4,980 3,250 No. 306 3,630 2,060 Total WIP 25,120 14,760 For general factory use 970 2,550 click Job Machine Hours Factory OH @$35 /Mc Hr Sales revenue No. 301 15 525 6,130 No. 302 33 1,155 8,360 No. 303 36 1,260 13,690 No. 304 74 2,590 No. 305 43 1,505 No. 306 29 1,015 Total 230 8,050 28,180 1 Journal Entries Account Title Dr $ Cr $ 1 Materials 3,090 Accounts Payable 3,090 2 Work In Process 39,880 Factory Overhead 3,520 Materials 26,090 Wages Payable 17,310 3 Factory Overhead 5,460 Accounts Payable 5,460 4 Factory Overhead 1,220 Accumulated Depreciation-Machinery & Equipment 1,220 5 Work In Process 8,050 Factory Overhead 8,050 6 Finished Goods 26,525 Work In Process 26,525 7 Accounts Reveivable 28,180 Sales 28,180 8 Cost Of Goods sold 16,790 Finished Goods 16,790 2 T accounts Work In Process Sr No JV Amt Sr No JV Amt 2 39,880 6 26,525 5 8,050 Balance 21,405 Finished Goods Sr No JV Amt Sr No JV Amt 6 26,525 8 16,790 Balance 9,735 3 Schedule of unfinished jobs Job Direct Materials Direct Labor Factory Oh Total Job 304 7,840 4,270 2,590 14,700 Job 306 3,630 2,060 1,015 6,705 4 Schedule of Finished goods Job Direct Materials Direct Labor Factory Oh Total Job 305 4,980 3,250 1,505 9,735
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