Entries and Schedules for Unfinished Jobs and Completed Jobs Staircase Equipment
ID: 2484290 • 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: 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 3,640 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: Job Machine Hours No. 301 45 No. 302 29 No. 303 19 No. 304 65 No. 305 42 No. 306 18 Total 218 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". Entries Description Debit Credit a. 2450 2450 b. c. 5000 5000 d. 1750 1750 e. f. g. 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. Work in Process
Explanation / Answer
Answer:1
Factory overhead cost is calculated as: Factory overhead rate per machine hour * no. of machine hours per job
Journal entries:
Entries
Description
Debit
Credit
a.
Materials Dr.
To accounts payable
2450
2450
b.
Work in process Dr.(sum of Materials and labor of jobs from 301 to 306)
Factory overhead Dr.
To Materials (sum of all jobs and general factory use)
To wages payable (sum of all jobs and general factory use)
44110
4530
23900
24740
c.
Factory overhead Dr.
To accounts payable
5000
5000
d.
Factory overhead Dr.
To accumulated depreciation
1750
1750
e.
Work in process Dr
To factory overhead (218 * $65)
14170
14170
f.
Finished goods Dr. (sum of material, labor and factory overhead cost of completed jobs)
To work in process
33325
33325
g.
Accounts receivable Dr.(9610+10090+14430)
To sales
34130
34130
h.
Cost of goods sold dr.(sum of material, labor and factory overhead cost of jobs that were billed)
To finished goods
21385
21385
Answer:2
Work in process
(b)
44110
(f)
33325
(e)
14170
Balance
24955
Finished goods
(f)
33325
(h)
21385
Balance
11940
Job no. Direct material Direct labor Machine hours Factory overhead cost @$65 per machine hour Total cost of each job 301 2620 2460 45 2925 8005 302 3200 3320 29 1885 8405 303 2120 1620 19 1235 4975 304 7180 6100 65 4225 17505 305 4560 4650 42 2730 11940 306 3330 2950 18 1170 7450 General factory use 890 3640 Total 23900 24740 218 14170 58280Related Questions
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