Chapter 10 Accounting Systems for Manufacturing Businesses 21 Entries and schedu

Question

Chapter 10 Accounting Systems for Manufacturing Businesses 21 Entries and schedules for unfinished jobs and completed jobs 0-2 b Equipment Company uses a job order cost system. The following data summarize es related to production for June 20Y4, the first month of operations Obj 5 the operations re purchased on account, $93,600, ls requisitioned and factory labor used Materials , h Materials 5.Work in Process, balance, $89,160 Materials Factory Laboe No. 6001 No. 6002 No. 6003 No. 6004 No. 6005 No. 6006 For general factory use 9.400 11,500 7.600 25,800 16.400 11,920 8.800 11,880 5,960 21,840 16,600 10,600 13.000 overhead costs incurred on account, $18,000. c Factory d Depreciation of machinery and equipment, $6.240. e The factory overhead rate is $50 per machine hour. Machine hours used Job No. 6001 6002 No. 6003 No. 6004 No. 6005 No. 6006 Total Machine Hours 72 120 96 300 132 f Jobs completed: 6001, 6002, 6003, and 6005 & Jobs were shipped and customers were billed as follows: Job 6001, $26,000, Job 6002, $36,000: Job 6003, $48,000. Instructions 1. Prepare a schedule summarizing manufacturing costs by job for June. Uise the following form: Job Direct Materials Direct Labor Factory Overhead Total 2. Prepare a schedule of jobs finished in June. 3. Prepare a schedule of jobs sold in June. What account does this schedule support for the 4. Prepare a schedule of completed jobs on hand as of June 30, 20Y4. What account does 5. Prepare a schedule of unfinished jobs as of June 50, 20Y4. What account does this schedule 6 Determine the gross profit for June based upon the jpobs sold. month of June this schedule support support?

Explanation / Answer

Overhead are calculated = machine hour* per hour rate50$

2)Finished goods schedule:

3)Sold jobs:

Schedule of jobs sold in June support COGS account in month of june. since these jobs will be removed from COGS accounts.

4Completed job in hand:

This schedule support Finished good account since all completed jobs transfer to FG account from WIP account.

5Unfinished job:

This schdule support to WIP account.

6) gross profit

Schedule of summary of cost for each job Material labour overhead Total 6001 9400 8800 3600 21800 6002 11500 11880 6000 29380 6003 7600 5960 4800 18360 6004 25800 21840 15000 62640 6005 16400 16600 6600 39600 6006 11920 10600 4000 26520

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