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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: a. Materials purchased on account. $147,000. b. Materials requisitioned and factory labor used: Job No. Materials Factory Labor 101 $19,320 $19,S00 102 23,100 28,140 103 13,440 14,000 104 38,200 36,500 105 18,050 15,540 106 18,000 18,700 For general factory use 9,000 20,160 c. Factory overhead Costs incurred on account, $ 6,000. d. Depreciation of machinery and equipment, $ 4,100. e. The factory overhead rate is $ 40 per machine hour. Machine hours used: Job Machine Hours 101 154 102 160 103 126 104 238 105 160 106 174 Total 1,012 f. Jobs completed: 101, 102, 103, and 105. g. Jobs were shipped and customers were billed as follows: Job 101, $ 62,900; Job 102, $ 80,700; Job 105, $ 45,500. Instructions 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 the 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.

BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 19, Problem 19.2BPR
Textbook Problem

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:

a. Materials purchased on account. $147,000.

b. Materials requisitioned and factory labor used:

Job No. Materials Factory Labor
101 $19,320 $19,S00
102 23,100 28,140
103 13,440 14,000
104 38,200 36,500
105 18,050 15,540
106 18,000 18,700
For general factory use 9,000 20,160

c. Factory overhead Costs incurred on account, $6,000.

d. Depreciation of machinery and equipment, $4,100.

e. The factory overhead rate is $40 per machine hour. Machine hours used:

Job Machine Hours
101 154
102 160
103 126
104 238
105 160
106 174
Total 1,012

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

g. Jobs were shipped and customers were billed as follows: Job 101, $62,900; Job 102, $80,700; Job 105, $45,500.

Instructions

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 the 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.

Expert Solution

(1)

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.

Explanation of Solution

The journal entries of operations of CompanyH is as follows:

Date Account titles and Explanation Debit
($)
Credit
($)
a Materials 147,000  
      Accounts Payable   147,000
  (Record materials purchased)    
       
b Work in processTable (2) 130,110  
  Factory overhead 9,000  
      Materials   139,110
  (Record material requisitioned to jobs)    
       
  Work in processTable (2) 132,380  
  Factory overhead 20,160  
      Wages payable   152,540
  (Record factory labor used in production)    
       
c Factory overhead 6,000  
      Accounts payable   6,000
  (Record factory overhead cost incurred on account)    
       
d Factory overhead 4,100  
      Accumulated depreciation – Machinery & Equipment   4,100
  (Record depreciation on account)    
       
e Work in process 40,480  
      Factory overhead(1,012 hours × $40)   40,480
  (Record overhead applied to jobs)    
       
f Finished goodsTable (3) 175,090  
      Work in process   175,090
  (Record completion of job)    
       
g Accounts Receivable 189,100  
      Sales   189,100
  (Record sales on account)    
    ...
Expert Solution

(2)

To determine

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

Expert Solution

(3)

To determine

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

Expert Solution

(4)

To determine

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

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Chapter 19 Solutions

Accounting
Show all chapter solutions
Ch. 19 - Issuance of materials On May 7, Bergan Company...Ch. 19 - Issuance of materials On August 4, Rothchild...Ch. 19 - Direct labor costs During May, Bergan Company...Ch. 19 - Direct labor costs During August, Rothchild...Ch. 19 - Factory overhead costs During May, Bergan Company...Ch. 19 - Factory overhead costs During August, Rothchild...Ch. 19 - Applying factory overhead Bergan Company estimates...Ch. 19 - Applying factory overhead Rothchild Company...Ch. 19 - Job costs At the end of May, Bergan Company had...Ch. 19 - Job costs At the end of August, Rothchild Company...Ch. 19 - Transactions in a job order cost system Five...Ch. 19 - Cost of materials issuances under the FIFO method...Ch. 19 - Entry for issuing materials Materials issued for...Ch. 19 - Entries for materials GenX Furnishings...Ch. 19 - Entry for factory labor costs A summary of the...Ch. 19 - Entry for factory labor costs The weekly time...Ch. 19 - Entries for direct labor and factory overhead...Ch. 19 - Factory overhead rates, entries and account...Ch. 19 - Predetermined factory overhead rate Street....Ch. 19 - Predetermined factory overhead rate Poehling...Ch. 19 - Entry for jobs completed; cost of unfinished jobs...Ch. 19 - Entries for factory costs and jobs completed Old...Ch. 19 - Financial statements of a manufacturing firm The...Ch. 19 - Decision making with job order costs Alvarez...Ch. 19 - Decision making with job order costs Raneri...Ch. 19 - Job order cost accounting for a Service company...Ch. 19 - Job order cost accounting for a service company...Ch. 19 - Entries for costs in a job order cost system...Ch. 19 - Entries and schedules for unfinished jobs and...Ch. 19 - Job order cost sheet Remnant Carpet Company sells...Ch. 19 - Analyzing manufacturing cost accounts Fire Rock...Ch. 19 - Flow of costs and income statement Ginocera Inc....Ch. 19 - Entries for costs in a job order cost system Royal...Ch. 19 - Entries and schedules for unfinished Jobs and...Ch. 19 - Job order cost sheet Stretch and Trim Carpet...Ch. 19 - Analyzing manufacturing cost accounts Clapton...Ch. 19 - Flow of costs and income statement Technology...Ch. 19 - Communication TAC Industries sells heavy equipment...Ch. 19 - Predetermined overhead rates As an assistant cost...Ch. 19 - Communication Carol Creedence, the plant manager...Ch. 19 - Job order decision making and rate deficiencies...Ch. 19 - Recording manufacturing costs Todd Lay just began...

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