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

ID: 2557545 • Letter: T

Question

Tybee Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations:

Chart of Accounts

Amount Descriptions

Journal

1. 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.

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JOURNAL

ACCOUNTING EQUATION

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

T Accounts

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.

Schedule of Unfinished Jobs

3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries.

Tybee Industries Inc.

Schedule of Unfinished Jobs

1

Job

Direct Materials

Direct Labor

Factory Overhead

Total

2

3

4

Balance of Work in Process, January 30

Schedule of Completed Jobs

4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account. Refer to the list of Amount Descriptions list for the exact wording of the answer choices for text entries.

Tybee Industries Inc.

Schedule of Completed Jobs

1

Job

Direct Materials

Direct Labor

Factory Overhead

Total

2

a. Materials purchased on account, $29,800. b. Materials requisitioned and factory labor used:

Explanation / Answer

JOURNAL

ACCOUNTING EQUATION

DATE

DESCRIPTION

POST. REF.

DEBIT

CREDIT

ASSETS

LIABILITIES

EQUITY

1

Jan-31

Materials

$     29,800

$     29,800

$     29,800

Accounts Payable

$    29,800

2

Jan-31

Work in Progress

$     54,960

-

Materials

$     27,010

Factory Labor

$     27,950

3

Jan-31

Factory Overhead Costs

$      5,500

$      5,500

$     (5,500)

Accounts Payable

$      5,500

4

Jan-31

Depreciation

$      1,980

$     (1,980)

$     (1,980)

Machinery

$      1,980

5

No entry for overhead rate

6

Jan-31

Finished Goods

$     36,015

-

Work in Progress

$     28,941

Factory Overhead

$      7,074

Job Completed

301

302

303

305

Direct Material

$        2,960

$        3,620

$        2,400

$          5,100

Factory Labor

$        2,775

$        3,750

$        1,875

$          5,250

$        6,036

$        7,672

$        4,578

$        10,655

$        28,941

Machine Hours

$              25

$              36

$              30

$                40

Factory Overhead Rate

$              54

$              54

$              54

$                54

Factory Overhead Allocated

$        1,350

$        1,944

$        1,620

$          2,160

$          7,074

JOURNAL

ACCOUNTING EQUATION

DATE

DESCRIPTION

POST. REF.

DEBIT

CREDIT

ASSETS

LIABILITIES

EQUITY

1

Jan-31

Materials

$     29,800

$     29,800

$     29,800

Accounts Payable

$    29,800

2

Jan-31

Work in Progress

$     54,960

-

Materials

$     27,010

Factory Labor

$     27,950

3

Jan-31

Factory Overhead Costs

$      5,500

$      5,500

$     (5,500)

Accounts Payable

$      5,500

4

Jan-31

Depreciation

$      1,980

$     (1,980)

$     (1,980)

Machinery

$      1,980

5

No entry for overhead rate

6

Jan-31

Finished Goods

$     36,015

-

Work in Progress

$     28,941

Factory Overhead

$      7,074