Chapter 16 PR 16-1B, PR 16-2B

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Entries and Schedules for Unfinished Jobs and Completed Jobs

Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations:

Materials purchased on account, $3,390.

Materials requisitioned and factory labor used:

Job No.	Materials		Factory Labor
101	$2,070		$2,980
102	2,530		4,020
103	1,680		1,970
104	5,670		7,390
105	3,600		5,630
106	2,630		3,580
For general factory use	700		4,410

Factory overhead costs incurred on account, $3,950.

Depreciation of machinery and equipment, $2,120.

The factory overhead rate is $65 per machine hour. Machine hours used:

Job No.	Machine Hours
101		29
102		24
103		31
104		70
105		38
106		38
Total		230

Jobs completed: 101, 102, 103, and 105.

Jobs were shipped and customers were billed as follows: Job 101, $8,320; Job 102, $9,730; Job 105, $16,430.

Required:

1. Journalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank.

Entries	Description	Debit	Credit
a.	Materials
	Accounts Payable
b.	Work in Process
	Factory Overhead
	Materials
	Wages Payable
c.	Factory Overhead
	Accounts Payable
d.
e.
f.
g. Sale
g. Cost

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.

Work in Process
Bal.

Finished Goods
Bal.

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

Hildreth Company Schedule of Unfinished Jobs
Job	Direct Materials		Direct Labor		Factory Overhead		Total
	$		$		$		$
Balance of Work in Process, April 30							$

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

Hildreth Company Schedule of Completed Jobs
Job	Direct Materials		Direct Labor		Factory Overhead		Total
	$		$		$		$