Entries and Schedules for Unfinished Jobs and Completed Jobs Staircase Equipment
ID: 2483467 • 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, $2,450.
Materials requisitioned and factory labor used:
Factory overhead costs incurred on account, $5,000.
Depreciation of machinery and equipment, $1,750.
The factory overhead rate is $65 per machine hour. Machine hours used:
Jobs completed: 301, 302, 303, and 305.
Jobs were shipped and customers were billed as follows: Job 301, $9,610; Job 302, $10,090; Job 303, $14,430.
Required:
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.
Icon Key
Problem 2-2 (Algorithmic)
Job Materials Factory Labor No. 301 $2,620 $2,460 No. 302 3,200 3,320 No. 303 2,120 1,620 No. 304 7,180 6,100 No. 305 4,560 4,650 No. 306 3,330 2,950 For general factory use 890 3,640Explanation / Answer
Entries Description Debit Credit a. Raw Material 2450 Accounts Payable 2450 b. Work in process-Job 301 $ 2,620 Work in process-Job 302 3,200 Work in process-Job 303 2,120 Work in process-Job 304 7,180 Work in process-Job 305 4,560 Work in process-Job 306 3,330 Factory Overhead 890 Raw Material 23900 c. Work in process-Job 301 $ 2,460 Work in process-Job 302 3,320 Work in process-Job 303 1,620 Work in process-Job 304 6,100 Work in process-Job 305 4,650 Work in process-Job 306 2,950 Factory Overhead 3,640 Salaries & Wages Payable 24740 d. Factory Overhead 5000 Accounts Payable 5000 e. Factory Overhead 1750 Depreciation on M&E 1750 f. Work in process-Job 301 2925 Work in process-Job 302 1885 Work in process-Job 303 1235 Work in process-Job 304 4225 Work in process-Job 305 2730 Work in process-Job 306 1170 Factory Overhead 11280 Over absorbed Overhead 2890 g. Finished Goods-Job 301 $ 8,005 Finished Goods-Job 302 $ 8,405 Finished Goods-Job 303 $ 4,975 Finished Goods-Job 305 $ 11,940 Work in process-Job 301 $ 8,005 Work in process-Job 302 $ 8,405 Work in process-Job 303 $ 4,975 Work in process-Job 305 $ 11,940 Work in Process Raw Material $ 23,010 FG-301 $ 8,005 salaries & wages payable $ 21,100 FG-302 $ 8,405 Factory Overhead $ 11,280 FG-303 $ 4,975 Overabsorbed Overhead $ 2,890 FG-305 $ 11,940 $ 58,280 $ 33,325 Balance $ 24,955 Finished Goods Work in Process-301 $ 8,005 COGS 21385 Work in Process-302 $ 8,405 Work in Process-303 $ 4,975 Work in Process-305 $ 11,940 $ 33,325 21385 Balance-305 $ 11,940 Staircase Equipment Company Schedule of Unfinished Jobs Job Direct Materials Direct Labor Factory Overhead Total 304 7,180 6,100 4225 17505 306 3330 2950 1170 7450 Total 24955 Staircase Equipment Company Schedule of Finished Jobs Job Direct Materials Direct Labor Factory Overhead Total 305 4,560 4,650 2730 11940 Total 11940 Job Materials Factory Labor Factory Overhead Total Jobs Completed Billed No. 301 $ 2,620 $ 2,460 2925 $ 8,005 301 9610 No. 302 3,200 3,320 1885 $ 8,405 302 10090 No. 303 2,120 1,620 1235 $ 4,975 303 14430 No. 304 7,180 6,100 4225 $ 17,505 305 No. 305 4,560 4,650 2730 $ 11,940 No. 306 3,330 2,950 1170 $ 7,450 For general factory use 890 3,640 Factory Overhead 5,000 Depreciation of Machinery and Equipment 1,750 Factory Overhead Rate 65 per MH Job Machine Hours No. 301 45 2925 No. 302 29 1885 No. 303 19 1235 No. 304 65 4225 No. 305 42 2730 No. 306 18 1170 Total 218 14170
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