Tybee Industries Inc. uses a job order cost system. The following data summarize

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:

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.

CHART OF ACCOUNTSTybee Industries Inc.General Ledger

Interest Expense

JOURNAL

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

Explanation / Answer

Answer 1. Journal Entry Date Particulars Dr. Amt Cr. Amt a. Direct Materials                                     Dr.          29,800    To Accounts Payable          29,800 (Record the material purchased on Account) b. WIP                                                            Dr.          49,780 Factory Overhead                                Dr.            5,180    To Direct Material          27,010    To Wages Payable          27,950 (Record the meterial issue and factory labor used) c. Factory Overhead                              Dr.            5,500    To Accounts Payable            5,500 (Record the factory overhead incurred) d. Factory Overhead                             Dr.            1,980 To Accumulated Dep. - Mach. & Equip.            1,980 (Record the dep. Charged on Mach. & Equip.) e. WIP                                                         Dr.          12,312     To Factory Overheads (228 X 54)          12,312 (Records the Factory Overehead charged to WIP) f. WIP                                                        Dr.          34,804    To Finished Goods          34,804 (Record the Job 310, 302, 303 & 305 Completed and transferred to Finished goods) g. Accounts receivables                     Dr.          34,450    To Sales          34,450 (record the Job 301, 302 & 303 sold) h. Cost of Goods Sold                             Dr.          22,294    To Finished Goods          22,294 (record the cost of goods sold) Answer 2. Finished goods WIP Beg. Bal                   -   Beg. Bal                -   f.          34,804      22,294 h. b.       49,780          34,804 f. e.       12,312 End. Bal.          12,510 End. Bal.       27,288 Answer 3. Schedule of Unfinished Jobs 304 306 Total Direct Material            8,100          3,750          11,850 Factory Labor            6,860          3,340          10,200 Factory Overhead            3,888          1,350            5,238 Total          18,848          8,440          27,288 Answer 4. Schedule of Completed Jobs 301 302 303 305 Total Direct Material            2,960          3,620            2,400            5,100          14,080 Factory Labor            2,775          3,750            1,875            5,250          13,650 Factory Overhead            1,350          1,944            1,620            2,160            7,074 Total            7,085          9,314            5,895          12,510          34,804

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