Tybee Industries Inc. uses a job order cost system. The following data summarize
ID: 2477482 • Letter: T
Question
Tybee Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January 2016, the first month of operations:
CHART OF ACCOUNTS
Tybee Industries Inc.
General Ledger
ASSETS
110 Cash
121 Accounts Receivable
125 Notes Receivable
126 Interest Receivable
131 Materials
132 Work in Process
133 Factory Overhead
134 Finished Goods
141 Supplies
142 Prepaid Insurance
143 Prepaid Expenses
181 Land
191 Machinery and Equipment
192 Accumulated Depreciation-Machinery and Equipment
LIABILITIES
210 Accounts Payable
221 Utilities Payable
231 Notes Payable
236 Interest Payable
241 Lease Payable
251 Wages Payable
252 Consultant Fees Payable
EQUITY
311 Common Stock
340 Retained Earnings
351 Dividends
390 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Wages Expense
531 Selling Expenses
532 Insurance Expense
533 Utilities Expense
534 Office Supplies Expense
540 Administrative Expenses
561 Depreciation Expense-Machinery and Equipment
590 Miscellaneous Expense
710 Interest Expense
DATE DESCRIPTION POST. REF. DEBIT CREDIT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Explanation / Answer
Journal entries
Titles
Debit
Credit
a
Raw materials inventory
31,030
To Accounts payable
$31,030
b
WIP inventory
26,540
Factory overhead
1,060
To Raw materials inventory
$27,600
WIP inventory
23,680
Factory overhead
4,260
To Factory payroll
27,940
c
Factory overhead
5,290
To Accounts payable
$5,290
d.
Factory overhead
1,960
To Accumulated depreciation
1,960
e.
WIP inventory
11,544
To Factory overhead
(222*52)
11,544
f.
Finished goods inventory
34,678
To WIP inventory
34,678
g
Accounts receivable
34,940
To Sale
34,940
Cost of goods sold
22,158
To Finished goods inventory
22,158
Work in process inventory
Raw materials inventory
26,540
Finished goods inventory
34,678
Factory payroll
23,680
Factory overhead
11,544
Balance
27,086
Finished goods inventory
WIP inventory
34,678
Cost of goods sold
22,158
Balance
12,520
c) Schedule of unfinished goods (job304 and 306)
job
Direct materials
Direct labor
Overhead applied
total
304
8,280
7,010
3,640
18,930
306
3,790
3,170
1,196
8,156
Total
27,086
d)Schedule of finished goods in hand (job 305)
Job 305
5,340
5,100
2,080
12,520
Titles
Debit
Credit
a
Raw materials inventory
31,030
To Accounts payable
$31,030
b
WIP inventory
26,540
Factory overhead
1,060
To Raw materials inventory
$27,600
WIP inventory
23,680
Factory overhead
4,260
To Factory payroll
27,940
c
Factory overhead
5,290
To Accounts payable
$5,290
d.
Factory overhead
1,960
To Accumulated depreciation
1,960
e.
WIP inventory
11,544
To Factory overhead
(222*52)
11,544
f.
Finished goods inventory
34,678
To WIP inventory
34,678
g
Accounts receivable
34,940
To Sale
34,940
Cost of goods sold
22,158
To Finished goods inventory
22,158
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