Question: I need help solving the problem posted below: Entries and Schedules for Unfinished Jobs and Completed Jobs Hildreth Company uses a job order cost system.
I need help solving the problem posted below:
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, $2,230.
Materials requisitioned and factory labor used:
| Job No. | Materials | Factory Labor | ||
| 101 | $2,300 | $1,960 | ||
| 102 | 2,810 | 2,650 | ||
| 103 | 1,860 | 1,290 | ||
| 104 | 6,300 | 4,860 | ||
| 105 | 4,000 | 3,700 | ||
| 106 | 2,920 | 2,350 | ||
| For general factory use | 780 | 2,900 | ||
Factory overhead costs incurred on account, $4,390.
Depreciation of machinery and equipment, $1,390.
The factory overhead rate is $65 per machine hour. Machine hours used:
| Job No. | Machine Hours | ||
| 101 | 26 | ||
| 102 | 33 | ||
| 103 | 24 | ||
| 104 | 73 | ||
| 105 | 33 | ||
| 106 | 16 | ||
| Total | 205 | ||
Jobs completed: 101, 102, 103, and 105.
Jobs were shipped and customers were billed as follows: Job 101, $7,140; Job 102, $9,130; Job 105, $13,660.
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. | Factory Overhead | ||
| Accumulated Depreciation-Machinery and Equipment | |||
| e. | Work in Process | ||
| Factory Overhead | |||
| f. | Finished Goods | ||
| Work in Process | |||
| g. Sale | Accounts Receivable | ||
| Sales | |||
| g. Cost | Cost of Goods Sold | ||
| Finished Goods |
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 | |||
|---|---|---|---|
| (b) | (f) | ||
| (e) | |||
| Bal. | |||
| Finished Goods | |||
|---|---|---|---|
| (f) | (g) | ||
| 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 | ||||
| No. 104 | $ | $ | $ | $ | ||||
| No. 106 | ||||||||
| 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 | ||||
| Finished Goods, April 30 (Job 103) | $ | $ | $ | $ | ||||
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