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

ID: 2460545 • 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

none

X

Amount Descriptions

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

Job No. 306

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

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

A.

Journal entries are recorded as under:

B.

Work in process and Finished goods accounts are prepared as under:

C.

Schedule of unfinished goods is prepared as under:

D.

Schedule of completed jobs in hand is prepared as under:

S.No Particulars L.F Amount ($) Amount ($) a. Material 31,030     Accounts Payable 31,030 (For Material Purchased on account) b. Work in Process-Job 301 5,770 Work in Process-Job 302 7,460 Work in Process-Job 303 4,300 Work in Process-Job 304 15,290 Work in Process-Job 305 10,440 Work in Process-Job 306 6,960 Factory Overhead (Indirect Material) 1,060 Factory Overhead (Indirect labour) 4,260     Material 55540 (Raw material an indirect material issued to production and labour also issued to production) c. Factory Overhead (Miscellaneous) 5,290     Accounts Payable 5,290 (For factory overhead cost incurred) d. Factory Overhead (Depreciation) 1,960    Acc Dep -Machinery and equipment 1,960 (For Depreciation recorded) e. Work in Process-Job 301 1196 Work in Process-Job 302 1,924 Work in Process-Job 303 1508 Work in Process-Job 304 3640 Work in Process-Job 305 2080 Work in Process-Job 306 1,196    factory overhead 11,544 (For factory overhead allocated) f. Finished Goods Job 301 6,966 Finished Goods Job 302 9,384 Finished Goods Job 303 5,808 Finished Goods Job 305 12,520    Work in Process-Job 301 6,966    Work in Process-Job 302 9,384    Work in Process-Job 303 5,808    Work in Process-Job 305 12,520 (For Job 301,302,303 and 305 cost transferred to finished goods account) g. Accounts Receivable 34,940     Sales 34,940 (For goods of Job 301,303 and 303 sold recorded) g. Cost of goods sold 22,158    Finished Goods Job 301 6,966    Finished Goods Job 302 9,384    Finished Goods Job 303 5,808 (For cost of goods sold recorded)