Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

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

a. Materials purchased on account, $31,030. b. Materials requisitioned and factory labor used:

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