27th Edition
WARREN + 5 others
ISBN: 9781337272094




27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Entries and schedules for unfinished jobs and completed jobs

Tybee Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations:

a. Materials purchased on account, $29,800.

b. Materials requisitioned and factory labor used:

Job Materials Factory Labor
301 $2,960 $2,775
302 3,620 3,750
303 2,400 1,875
304 8,100 6,860
30S 5,100 5,250
306 3,750 3,340
For general factory use 1,080 4,100

c. Factory overhead costs incurred on account, $5,500.

d. Depreciation of machinery and equipment, $1,980.

e. The factory overhead rate is $54 per machine hour. Machine hours used:

Job Machine Hours
301 25
302 36
303 30
304 72
305 40
306 25
Total 228

f. Jobs completed: 301, 302, 303, and 305.

g. Jobs were shipped and customers were billed as follows: Job 301, $8,250; Job 302,  $11,200; Job 303, $15,000.


1. Journalize the entries to record the summarized operations.

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 tile month.

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

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


To determine

Job order costing

Job order cost system provides a separate record of each particular quantity of product that passes through the factory. Each quantity that is manufactured in the business is known as job. Job order costing is used when the products produced are significantly different from each other.

To record: the journal entries to record summarized operations.


The journal entries of operations of Industry T is as follows:

Date Account titles and Explanation Debit
a Materials 29,800  
      Accounts Payable   29,800
  (Record materials purchased)    
b Work in processTable (2) 25,930  
  Factory overhead 1,080  
      Materials   27,010
  (Record material requisitioned to jobs)    
  Work in processTable (2) 23,850  
  Factory overhead 4,100  
      Wages payable   27,950
  (Record factory labor used in production)    
c Factory overhead 5,500  
      Accounts payable   5,500
  (Record factory overhead cost incurred on account)    
d Factory overhead 1,980  
      Accumulated depreciation – Machinery & Equipment   1,980
  (Record depreciation on account)    
e Work in process(228 hours × $54) 12,312  
      Factory overhead   12,312
  (Record overhead applied to jobs)    
f Finished goodsTable (3) 34,804  
      Work in process   34,804
  (Record completion of job)    
g Accounts Receivable 34,450  
      Sales   34,450
  (Record sales on account)    


To determine

To prepare: appropriate T-accounts for work in process and Finished goods account.


To determine

To prepare: schedule of unfinished jobs to support the balance in the work in process account.


To determine

To prepare: schedule of completed jobs to support the balance in the work in process account.

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