Hildreth Company uses a job order cost system. The following data summarize the

Question

Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations:

Materials purchased on account, $3,250.

Materials requisitioned and factory labor used:

Factory overhead costs incurred on account, $5,180.

Depreciation of machinery and equipment, $1,780.

The factory overhead rate is $40 per machine hour. Machine hours used:

Jobs completed: 101, 102, 103, and 105.

Jobs were shipped and customers were billed as follows: Job 101, $7,600; Job 102, $9,950; Job 105, $14,180.

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.

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.

Job No. Materials Factory Labor 101 $2,710 $2,500 102 3,310 3,380 103 2,200 1,650 104 7,430 6,200 105 4,720 4,730 106 3,440 3,000 For general factory use 920 3,700

Explanation / Answer

job sheet Materials labor overhead total job 101 2,710 2,500 1120 6,330 job 102 3,310 3,380 1600 8,290 job 103 2,200 1,650 1040 4,890 job 104 7,430 6,200 3280 16,910 job105 4,720 4,730 1640 11,090 job 106 3,440 3,000 1440 7,880 total 23,810 21,460 10120 55,390 Entries              Description                                  Debit Credit a. Raw materials inventory 3,250 Accounts payable 3,250 b. Work in process inventory 45,270 Factory overhead 4620 Raw materials inventory 24,730 Factory payroll 25,160 c. Factory overhead 5,180 Accounts payable 5,180 d. Factory overhead 1,780 Accumulated depreciation 1,780 e. Work in process inventory 10,120 Factory overhead 10,120 f. Finished goods inventory 30,600 work in process inventory 30,600 (44,980+57640+32480+39990) g. Accounts receivable 31730 sale 31,730 cost of good sold 25,710 finished goods inventory 142,610 (44,980+57640+39,990) 2) work in process b. 45,270 30,600 f. e. 10,120 bal 24,790 Finished goods f. 30,600 25,710 g. bal 4,890 3) Schedule of unfinished jobs job Direct direct FOH total materials labor job 104 7,430 6,200 3280 16,910 job 105 3,440 3,000 1440 7,880 Balance in work in process ,april 30 24,790 4) Schedule of completed jobs job Direct direct FOH total materials labor job 103 2,200 1,650 1040 4,890

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