Derby Music Company specializes in producing and packaging compact discs (CDs) for the music recording industry. Derby use a job order cost system. The following data summarize the operations related to production for March, the first month of operations:

a. Materials purchased on account. $15,500.

b. Materials requisitioned and labor used.

Materials Factory Labor

Job No. 100 $2,650 $1,770

Job No. 101 1,240 650

Job No. 102 980 420

Job No. 103 3,420 1,900

Job No. 104 1,000 500

Job No. 105 2,100`1,760

For general factory use 450 650

c. Factory overhead costs incurred on account. $2,700

d. Depreciation of machinery. $1,750

e. Factory overhead is applied at a rate of 70% of direct labor cost.

f. Jobs completed: Nos. 100, 101, 102, 104

g. Jobs 100, 101, 102 were shipped and customers were billed for $8,100, $3,800 and $3,500 respectively.

INSTRUCTIONS

1. Journalize the entries to record the transactions identified above.

2. Determine the account balances for Work in Process and Finished Goods.

3. Prepare a schedule of unfinished jobs to support the balances in the work in process account

4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.

Answer rating: 100% (QA)

Schedule of Unfinished Job Jobs Completed on hand jobs completed and sold Particulars Unfinished Jobs Job completed on hand Job completed and sold Job ... View the full answer