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.
PAGE 10
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
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