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Tybee Industries Inc. uses a job order cost system A type of cost accounting sys

ID: 2460485 • Letter: T

Question

Tybee Industries Inc. uses a job order cost system

A type of cost accounting system that provides for a separate record of the cost of each particular quantity of product that passes through the factory.

. The following data summarize the operations related to production for January 2016, the first month of operations:

The form or electronic transmission used by a manufacturing department to authorize materials issuances from the storeroom.

Job

Materials

Factory Labor

none

X

Chart of Accounts

Income Summary

In CengageNOW, an Amount Description is a text entry other than an Account that has an amount associated with it.

none

X

Journal

A. Journalize the entries to record the summarized operations. Record each item (items a-f) as an individual entry on January 31. Record item g as 2 entries. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

Solution

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

Points:

Feedback

Check My Work

Explanation

none

X

T Accounts

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.

a

b

c

d

f

g

a

b

c

d

e

f

g

a

c

d

f

g

e

a

b

c

d

e

f

g

a

b

c

d

e

f

g

Points:

Feedback

Check My Work

none

X

Schedule of Unfinished Jobs

Prepare a schedule of unfinished jobs to support the balance in the work in process account. Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries.

Question not attempted.

Tybee Industries Inc.

Schedule of Unfinished Jobs

1

Job

Direct Materials

Direct Labor

Factory Overhead

Total

2

3

4

Balance of Work in Process, January 30

Solution

Tybee Industries Inc.

Schedule of Unfinished Jobs

1

Job

Direct Materials

Direct Labor

Factory Overhead

Total

2

3

4

Balance of Work in Process, January 30

a. Materials purchased on account, $31,030. b. Materials requisitioned

The form or electronic transmission used by a manufacturing department to authorize materials issuances from the storeroom.

and factory labor used:

Explanation / Answer

Date Description Debit Credit a Raw material inventory 31030 Creditors 31030 (To record the purchase) b Work in progress 26540 Manufacturing overhead 1060 Inventories 27600 (To record the rawmaterial and indirect material issues) b Work in process 23680 Manufacturing overhead 4260 Cash 27940 (To record the direct and indirect labor) c Work in process 5290 Manufacturing overhead 5290 (To record the factory overhead) d Depreciation 1960 Plant and machinery 1960 (To record the depreciation) e Work in process 11544 Manufacturing overhead 11544 (To record the factory overhead)