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

Question

Tybee Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January 2016, the first month of operations: a. Materials purchased on account, $31,030. b. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $3,060 $2,710 302 3,640 3,820 303 2,430 1,870 304 8,280 7,010 305 5,340 5,100 306 3,790 3,170 For general factory use 1,060 4,260 c. Factory overhead costs incurred on account, $5,290. d. Depreciation of machinery and equipment, $1,960. e. The factory overhead rate is $52 per machine hour. Machine hours used: Job Machine Hours 301 23 302 37 303 29 304 70 305 40 306 23 Total 222 f. Jobs completed: 301, 302, 303 and 305. g. Jobs were shipped and customers were billed as follows: Job 301, $8,430; Job 302, $10,960; Job 303, $15,550. Required: A. 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. B. 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. C. Prepare a schedule of unfinished jobs to support the balance in the work in process account.* D. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.* * Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries.

Explanation / Answer

Answer (a) Job Card 301 Account Debit Credit Work In process Inventory 6966 Raw Material Inventory 3060 Direct labor 2710 MFG Overhead '23*52 1196 Total 6966 6966 Job Card 302 Account Debit Credit Work In process Inventory 9384 Raw Material Inventory 3640 Direct labor 3820 MFG Overhead '37*52 1924 Total 9384 9384 Job Card 303 Account Debit Credit Work In process Inventory 5808 Raw Material Inventory 2430 Direct labor 1870 MFG Overhead '29*52 1508 Total 5808 5808 Job Card 304 Account Debit Credit Work In process Inventory 18930 Raw Material Inventory 8280 Direct labor 7010 MFG Overhead '70*52 3640 Total 18930 18930 Job Card 305 Account Debit Credit Work In process Inventory 12520 Raw Material Inventory 5340 Direct labor 5100 MFG Overhead '40*52 2080 Total 12520 12520 Job Card 306 Account Debit Credit Work In process Inventory 8156 Raw Material Inventory 3790 Direct labor 3170 MFG Overhead '23*52 1196 Total 8156 8156 Job Card 301 Finished goods Inventory 6966 Work In process Inventory 6966 Job Card 302 Finished goods Inventory 9384 Work In process Inventory 9384 Job Card 303 Finished goods Inventory 5808 Work In process Inventory 5808 Job Card 305 Finished goods Inventory 12520 Work In process Inventory 12520 Job Card 301 Cost of goods sold 6966 Finished goods Inventory 6966 Account Receivable 8430 Sales 8430 Job Card 302 Cost of goods sold 9384 Finished goods Inventory 9384 Account Receivable 10960 Sales 10960 Job Card 303 Cost of goods sold 5808 Finished goods Inventory 5808 Account Receivable 15550 Sales 15550 Answer (b) Work in Process a/c No. Total No. Total 301 6966 301 6966 302 9384 302 9384 303 5808 303 5808 304 18930 305 12520 305 12520 306 8156 Unfinished work 27086 Total 61764 61764 Finished Goods a/c No. Total No. Total 301 6966 301 6966 302 9384 302 9384 303 5808 303 5808 305 12520 Finished Inventory 12520 Total 34678 34678 Answer (c) Schedule of Unfinished Jobs Job (304) Job (306) Raw Material Inventory 8280 3790 Direct labor 7010 3170 MFG Overhead 3640 1196 Total unfinished Jobs 18930 8156 Gross Total unfinished Jobs 27086 Answer (d) Complete job on hand Job (305) Raw Material Inventory 5340 Direct labor 5100 MFG Overhead 2080 Complete job on hand 12520

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