Question

Entries and Schedules for Unfinished Jobs and Completed Jobs

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

1. Materials purchased on account, $3,170.
2. Materials requisitioned and factory labor used:
   

   Job No.	Materials		Factory Labor
   101	$3,030		$3,160
   102	3,700		4,270
   103	2,450		2,090
   104	8,300		7,840
   105	5,270		5,970
   106	3,850		3,790
   For general factory use	1,030		4,680

3. Factory overhead costs incurred on account, $5,790.
4. Depreciation of machinery and equipment, $2,240.
5. The factory overhead rate is $65 per machine hour. Machine hours used:
   

   Job No.	Machine Hours
   101		27
   102		35
   103		37
   104		72
   105		27
   106		39
   Total		237

6. Jobs completed: 101, 102, 103, and 105.
7. Jobs were shipped and customers were billed as follows: Job 101, $9,530; Job 102, $12,290; Job 105, $20,140.

Required:

1. Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank.

Entries	Description	Debit	Credit
a.
b.
c.
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
A.Finished Goods, April 30 (Job 103) B. Finished Goods, April 30 (Job 105) C. Finished Goods, April 30 (Job 1	$		$		$		$

Answer 1

job sheet
		Materials	labor	overhead	total
job 101		3,030	3,160	1755	7,945
job 102		3,700	4,270	2275	10,245
job 103		2,450	2,090	2405	6,945
job 104		8,300	7,840	4680	20,820
job105		5,270	5,970	1755	12,995
job 106		3,850	3,790	2535	10,175
total		26,600	27,120	15405	69,125
Entries	Description				Debit	Credit
a.	Raw materials inventory				3,170
	Accounts payable					3,170
b.	Work in process inventory				53,720
	Factory overhead				5710
	Raw materials inventory					27,630
	Factory payroll					31,800
c.	Factory overhead				5,790
	Accounts payable					5,790
d.	Factory overhead				2,240
	Accumulated depreciation					2,240
e.	Work in process inventory				15,405
	Factory overhead					15,405
f.	Finished goods inventory				38,130
	work in process inventory					38,130
	(job 101,102,103 &105)
g.	Accounts receivable				41960
	sale					41,960
	cost of good sold				31,185
	finished goods inventory					31,185
2)	work in process
	b.	53,720	38,130	f.
	e.	15,405
	bal	30,995
	Finished goods
	f.	38,130	31,185	g.
	bal	6,945
3)	Schedule of unfinished jobs
	job	Direct	direct	FOH	total
		materials	labor
	job 104	8,300	7,840	4680	20,820
	job 106	3,850	3,790	2535	10,175
	Balance in work in process ,april 30				30,995
4)	Schedule of completed jobs
		job	Direct	direct	FOH	total
			materials	labor
		job 103	2,450	2,090	2,405	6,945